Hi,

I am on H1B . I came US in May 2007 and filed Dual Tax Return. My company paid my tax because I got salary in India and per-dimes in US.

In 2008 for 6 months I got salary in India and next 6 months I will get salary Only in US. While filling my 2008 return my status will be RA.

My questions are -

- Does I have to include my Indian income in US return if yes then how I will include it.
- What about the income tax that I paid in India on my Indian income.
- What about my status in respect of India Tax System.

Thanks

If you have completed substantial presence test in 2008, then you will file resident tax return. You must report your worldwide income for 2008. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

You will get 6 months salary in India? Who is paying the salary? Will you be working in India or the U.S. Is that your W2 salary?

If you have completed substantial presence test in 2008, then you will file resident tax return. You must report your worldwide income for 2008. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

You will get 6 months salary in India? Who is paying the salary? Will you be working in India or the U.S.? Is that your W2 salary?

Thanks for quick reply.

During 2008 I am going to stay almost 11 months in US.(1 month vacation in India). For first 6(Jan - Jun) months I will get regular salary in India and Per diems in US. From Jul -Dec I will get salary in US only. My employer is same in both countries. My Salary earned in India is not reported on W2.

Since you will be in the U.S. for 11 months, you will file resident tax return. You will also report your world wide income.
On your income in India, it appears that your employer will withhold TDS. You will file Form 1116 to claim credit for the taxes paid in India.

You still need to confirm the arrangement. How can employer pay in India when you are not in India and deduct TDS? What are the advantages of getting paid in India? For India Taxes, you can visit mytaxes.in - Index (http://www.mytaxes.in)

Since you will be in the U.S. for 11 months, you will file resident tax return. You wil also report your world wide income.
On your income in India, it appears that your employer will withhold TDS. You will file Form 1116 to claim credit for the taxes paid in India.

You still need to confirm the arrangement. How can employer pay in India when you are not in India and deduct TDS? What are the advantages of getting paid in India? For India Taxes, you can visit mytaxes.in - Index (http://www.mytaxes.in)

I really appreciate your responses.

How I will report my India income on form 1040 ?

I came US on out of town assignment. My employer provides me all the thing like house and give per diems in US. In India he is giving me salary after deducting TDS.

I think in India I have to file 07-08 return as Non-resident. I claimed HRA and made investment under sec 80c to save tax. I am having all those things in my Form 16. What's the complication of filing India return as non-resident ? Please help me.

You report the India income on Line #7 of Form 1040.

The per diem is probably taxable as well if you did not submit expense reports to account for your expenses while in the U.S.

I cannot address the Indian tax issues.