What type of tax is applied when on L1 visa

It depends on a number of variables.

First, what is the source of your pay? Is the source your home country, or a U.S. company?

Second, HOW LONG were you in the U.S. in the calendar year?

Answer these questions and I can give more definitive guidance.

Source of income: working for some firm in US and foreign bank a/c interest earning only.During L1from 2002 Dec to June 2005 stayed 9 months in US.june 2005 got green card.

For December 2002, you were a non-resident alien and should have filed Form 1040NR.

For 2003 and all following years, you were a resident alien and should have filed Form 1040.

Since the income was from a U.S. firm, you were liable for FICA (Social Security and Medicare) taxes from the first you started working in the U.S. in December 2002.