[sriram2k3]

I'm working as a software engineer in India and I went to US for project work. I was in US for the period July 2006 to Aug 2007. I filed my return in India for the financial year 2006-2007 as a non-resident. However for the financial year 2007-2008 (AY 2008-2009), I'm a resident Indian as per Indian tax laws. This financial year, consists of both foreign Income. The foreign income consists of two parts
a) Living Expenses b) Indian Salary (equivalent in USD)
I have filed my return in US for the calendar year 2007 (upto Aug 2007) and paid the taxes for the total income. However, the indian company with whom I'm working added the Indian Salary alone (paid in US as US dollars) in the Form 16 (along with Salary paid in India during Sep 2007-Mar 2008) for the financial year 2007-2008 and deducted tax at source accordingly. This means I have paid the tax in US and India for the Indian salary for the period Apr 2007 to Aug 2007.
In this case, am I eligible for any relief in India under double taxation avoidance agreement. And whether, the living expenses given in US is an exempted income as far as India is concerned. If not, is this living expense amount to be considered taxable in India?

[MukatA]

This forum is about the U.S. taxes. You were in the U.S. from July 2006 to August 2007. This period covers two tax returns. Which visa did you have? Did you get form W2 in the U.S.
What income did you report on your 2007 tax return? The income earned while in the U.S. is taxable in the U.S. These info is needed to properly answer your question.

For your India tax queries, you can post at mytaxes - Index

[sriram2k3]

Dear Sir,

Thanks for your quick response. I was on a L1B visa. Yes I had received W2 for both 2006 and 2007. For Both these years I have filed the return in US for the taxable income arrived out of the W2 alone. Thank you for pointing me to the place for India tax query. I have posted my question there.

Thank you once again.

[MukatA]

You were in the U.S. on work visa and were paid in the U.S. by a U.S. company up to August 2007. This US. Company and Indian company is owned by same group.
You correctly reported this income in the U.S. and paid taxes on it.