[TaxQuery_1]

Hi,

I was in US from Jan 1, 2008 till Dec 11, 2008. My employer used to give me salary in US which had two components 1) US allowance 2) Indian Salary (given in dollar amount in US)
They also used to deduct US tax on whole income that is total of US allowance and Indian salary in US.

When I returned back to India in Decemeber,2008 they deducted tax in India also for the Indian component of Salary given in US. So I have paid taxes on Indian component both in US and India.

How can I use double taxation treaty to avail tax benefit in this situation

Regards,

[MukatA]

Who paid you salary in the U.S. Is it by a U.S. company (which may be related to the Indian company) or by the Indian company?

In India you are nonresident in FY 2008-09 and resident in the FY 2007-08.

[TaxQuery_1]

Who paid you salary in the U.S.? Is it by a U.S. company (which may be related to the Indian company) or by the Indian company?

In India you are nonresident in FY 2008-09 and resident in the FY 2007-08.

Hi Mukta,

I was paid by Indian Company from its registered address in US. Since I was out of India from May 2007 till Dec 2008 so my employer has declared me non resident Indian for Indian FY 2007-08 but resident Indian for Indian FY 2008-09 because as per them if a person is in India for 60 days or more in the current financial year and for 365 days or more in the preceding four financial years he would be resident Indian.

Please help me in getting benefit of double taxation

Regards

[MukatA]

This forum is for the U.S. taxes. In the U.S. your income and allowances are taxable.

[AtlantaTaxExpert]

When you file your U.S. tax return, you cannot file Form 1116 in order to claim the Foreign Tax Credit for taxes paid to India, because you are NOT a resident alien; you are a dual-status alien.

You will need to claim the credit on your Indian tax return for income earned in the U.S. and taxed by the U.S..