DTAA for Indian software engineer

Hi

1. If you have already taken the rebate for tax paid in US in the Indian income tax return, you cannot claim the refund now.

2. Sorry, but I'm not able to understand the query. Please elaborate.

Dear Sir,

For income tax filing in USA F.Y. is calendar year i.e. 01.01.2016-31.12.2016 and for India it is 01.04.2016-31.03.2017. While computing total income in India, global income earned during the period 01.04.2016-31.03.2017 will be considered and the rebate will be available of such income only irrespective of tax position in other country i.e tax payable or refundable in USA.

For US return filing, income will be considered from 01.01.2016-31.12.2016, taxes paid during this period will be considered only. You can claim 31000*3=93000 tax rebate in the US return filing, for which you can submit the TDS certificate to the US authorities. Deduction of TDS of Rs.1,60,000 in the month of March 2017 has no relevance. The only requirement is TDS claimed by you in US return filing should be actually deducted by the Indian income tax authorities.

Need clarification the below point

Deduction of TDS of Rs.1,90,000 is after considering global income and US tax paid or only six months income. According to me your six months income would be 4,80,000 on which small amount of tax would be levied.

Thanks

Hi,

The issue is because of difference in the accounting years in India and US. While US follows Calendar year (Jan-Dec), India has Apr-Mar as the financial year.

I don't think you will be able to claim refund of US taxes as you have already taken the benefit when filing the India return.

Regards,

Nikhil.

Dear Sir,

Calculate the proportionate amount of tax for the period from Oct 16 to Dec 16 i.e. 1,90,000*2,40,000/4,80,000= Rs.95,000 and you can claim the amount in US return filing. The HR department should have deducted the TDS on monthly basis which could make it easier for you to substantiate the amount during assessment.

Thanks

Dear Sir,

How much is the tax paid in USA? Also if possible can you share the details of tax calculation sheet maintained by your HR as we can get the figure of US tax paid from that sheet.

While filing the ITR in India, you can claim the benefit of US taxes in the below proportion.

Total Tax in India*foreign income/Total income

While filing US return, you have to check the formula and calculate the total tax for the whole year 2016 and calculate the indian tax in proportion to the Indian income.

Thanks

Without proper review of documents, it is very difficult to understand the facts like this.

Please show the TDS which actually related to the months of October to December, irrespective of the month of deduction.

Also, an expert with complete knowledge of US tax laws can guide you in a better way.

It is very difficult to comment based on the input you have provided.

I will need all the specific documents to study and come to a conclusion.

Also I am not very sure about the US tax laws and you may want to check with your HR in US to help you with this.

regards,

Nikhil.

Dear Sir,

For further clarification you can call me.

Thanks

Hi,

Please let me know are you resident of USA also as per US law and DTAA?

If yes, you can claim foreign tax credit for the taxes paid in India.

Otherwise, you claim credit in India for taxes paid in USA

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Although I'm not fully aware about US tax laws, but as far as I know, you will have to fill Form 1116 for claiming tax credit which words as "tax paid or accrued". So, you can calculate actual Indian taxes for the months Oct-Dec and show tax paid/ accrued in India in US tax return and claim credit.

.

pay taxes for the common period in USA and claim DTAA benefit in India

Without review of documents, is not possible to advise accurately.

It is advisable to visit consultancy firm having good exposure in US laws.

Hello,

Sorry not an expert with US Laws.