Hi,

I work for MNC in india and I am in USA since 30th Oct 04. I receive salary in USA as Living Allowance + India salary component. I pay tax on USA salary in USA since both india salary and Living allowance gets deposited in USA bank.

I am returning to india in Oct 07 and my status in india will be resident in India. My company is saying that they will deduct Taxes on my Global income so they are deducting taxes from April 07 till March 08 on Indian salary component.

It means I paid taxes on indian salary component in USA and in india as well. I am victim of double taxation Can you tell me can I claim the return on indian salary in USA and in india.

Thanks ,
KK

KK:

When you file your U.S. return, you should file Form 1116 to claim a credit for taxes paid to India.