Hi All

In 2008, I was based in NJ, USA on L1 VISA for a period of 164 days (May 2008- Oct 2008) & then I returned to India. My wife & son joined me during my stay. I have paid all taxes in US during this period. For FY (Indian FY April 2008-March 2009) am I supposed to file my returns in India also. If YES, will I've to pay taxes in India for what I earned in US. I calculated that I can get $ 2600 credit if I file my returns in US but I don't want to get stuck in double taxation & pay heavy taxes in India on my US earnings. Advice.

Your question addresses whether you need to pay Indian taxes on the money earned while in the U.S.

I am not an Indian tax expert, but general tax theory states that if the money is U.S.-sourced (i.e. paid from a U.S. company), then no Indian taxes are due.

If the income source is an Indian company, then indian taxes are probably due.