Hi

I moved to US in April '08 on an L1 Visa. I was receiving my salary in INR till Sept '08. From October '08 onwards I've been receiving my salary in USD.

Questions :

1. Computation of taxes in US - Does this depend on the combined salary earned in India and US? Or is it dependent only on the salary earned in US? This is relevant especially for figuring out the tax bracket etc. To exemplify further, please assume that I earned USD 25000 in India (in INR) and USD 10000 in the US. For US taxes, is 10000 taxed assuming total income as 10000 or is it taxed assuming total income as 35000?

2. Computation of taxes in India - Similar question as above. Does this computation depend on the salary in US as well?

3. Can advance tax paid/withheld in India be used to adjust taxes payable in US?
4. Can advance tax paid/withheld in India be used to request refund of taxes withheld in US?

Please let me know if any other details are required to answer this.

Thanks is advance for your help.

AB

Any salary received by you after arrival in the U.S. is taxable in the U.S. You will not get any credit for taxes paid in India.