Hi,

I am working as a software engineer in an Indian company. I have been deputed to the US branch of our company on L1-B visa during 24-April-2007 to 11-Nov-2007 (202 days). I have returned back to India on 13-Nov-2007. During this period, I used to get my Indian Salary as usual in India and daily allowance in US (which is non-taxable). For the Indian salary component, TDS have been deducted in India and in US as well. Double taxation for the same salary component. I came to know that I am eligible for double taxation benefits. I will be getting my W2 from the US company shortly.

Can you please let me know where do I have to approach for double taxation benefits? While filing tax in India or in US? What is the procedure?

Thanks in advance.

Regards,
Srini

Srini:

You will file a dual-status return, filing BOTH Form 1040 and 1040NR. You can claim a Foreign Tax Credit for the income taxes you paid to the Indian government on the income earned while in U.S. This will resolve your double taxation issue.

The dual-status return is NOT a return for the layman to prepare. I can help you professionally with this return.

If you are interested, contact me at [email protected] for a fee quote.