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View Full Version : Nri tax query


poojaarora
Feb 23, 2011, 12:20 AM
I am a US resident with a green card. I received an income of $4,000 in india in my indian bank account in early 2010. I filed the tax return in india but had to pay only $80 in tax because I had very little income.
However, I fall in 25% tax bracket in US. Wen I report this income on my US tax return, will I have to pay 25% tax on it or will the DTTA protect me because I have already paid tax on it in india.

AtlantaTaxExpert
Mar 11, 2011, 02:52 PM
You MUST report the interest income on your U.S. return and pay the tax; you can claim a Foreign Tax Credit under "passive income" on Form 1116 for the taxes paid to India.

MukatA
Mar 12, 2011, 09:40 PM
If tax rate is higher in US than what you paid in India, you will pay the difference in US. However, actual calculation will be on Form 1116.