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    naveen_iitr's Avatar
    naveen_iitr Posts: 1, Reputation: 1
    New Member
     
    #1

    May 30, 2009, 03:32 PM
    moved from USA to India (double taxation)
    My situation is as follows,

    I arrived USA (H1 visa) on 27-January-2007 with my wife (H4 visa). Before that we were in India full time. In USA, I was working for an Indian Company which was paying me the salary (Indian Component + USA allowances) in USA.

    For Indian FY 2007-08 (from April-2007 to March 2008), I didn't pay any taxes in India, as my status was NRI.

    I was in India on vacation from 5-December-2008 to 3-January-2009. I left USA and moved back to India on 27-January-2009. So in this way,

    For USA FY 2008, I'm a resident alien for USA.
    For India FY 2008-09, because I lived in India for more than 64 days in FY 2008-09, I became an Indian resident.

    Say, my total monthly income is "a", including "b" as Indian component and "c" as USA allowances (a=b+c).

    In USA, for FY 2008, I have paid the taxes for (12 months X a) amount i.e. from January-2008 to December-2008.

    In India, for FY 2008-09, my company has cut the TDS on Indian income (12 months X b) i.e. from April-2008 to March-2009.

    If you have understood my case correctly, you can see that on a portion of my income (Indian component from April-2008 to December-2008 = 9 months X b), I have paid the taxes in USA as well as in India at both the places.

    I'm just trying to understand, is it the case of double taxation or dual taxes? Can I claim the tax credit on this amount (9 months X b)?

    I have already filed my USA taxes (W2) in February-2009 and yet to file my taxes (Form 16) in India. If answer is YES, should I amend my USA-08 tax returns or should I claim it in India during Form-16 filing?

    Please guide me and let me know if any thing is not clear here or if you need more details.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    May 30, 2009, 10:19 PM

    On your U.S. return for 2008, you will report all your worldwide income.
    On India tax return for FY 2008-09, you will report only your India income on Form 16.
    This forum is for the U.S. taxes. For India taxes, you can post at mytaxes - Index
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #3

    Jun 1, 2009, 01:32 PM
    You would also claim a Foreign Tax Credit for the taxes paid to India for 2008.

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