[arjuniswow]

I am working in US for past 8 months. My Salary is tax deducted at Source by my employer and I have filed Tax Returns to IRS for the month of December 2013 based on my income for one month. The tax returns for this year shall be filed next year.

A part of my salary was earned in India from April 2013 till November 2013. The person who prepared my tax returns also included my US Salary of Jan 2014 till March 2014 while computing the tax.

I wanted to know whether I need to pay taxes twice once in India and once in US on the salary I earned in US. I thought India and US had a Double Taxation Agreement. Are there any exclusions to that agreement or it's a blanket agreement that any income earned in US shall be tax credited to India returns.

Thanks.

[AtlantaTaxExpert]

Unless your tax professional had permission from the IRS to file the return under a FISCAL year model (1 April 2013 to 31 March 2014), he/she should NOT have included the 2014 income on that initial tax return. You MAY need to amend the return to exclude the 2014 income.

If the U.S.-sourced income for 2014 was included on the Indian tax return (which used the 1 April 2013 to 31 March 2014 tax year), it is my impression that that is NOT correct under the Indian tax system (note that I am NOT an expert on Indian taxes). Generally speaking, each country taxes income that is earned within its borders and excludes income that was earned within the OTHER country's borders.

Recommend you discuss this issue with your Indian tax professional. If he INSISTS that the U.S -sourced income must be included, you can claim the Foreign Tax Credit using Form 1116 on the 2014 tax return.