First filed USA Return and Second filed India Return
I am US Citizen with OCI status (being person of indian origin). I am working(salaried)and living in USA and visits India once a year for 4 or 5 weeks . I have 3 houses in India now and has only income from house property in India . I am planning to file Income Tax Return for 2017 in USA as well in India . Right now i am preparing USA Return because USA uses calendar year and will file India Return as NRI in coming June because India uses financial year . Please clarify the below in this regard :
(1) I am filing USA Return right now and can file India return only after 31st March , thus i will have to first pay tax in USA on my total income (i.e., USA salary as well indian house rental) because of taxing global income in USA . Here , how will DTAA be used when i am first paying to US Govt. ?
(2) In such situation , how will i determine about how much tax is paid in USA specifically for my indian house rental income ?
(3) Which ITR Form will i use when filing my India return for only house rental income as NRI ? Any weblink for seeing that Form ?
(4) Is there any column for DTAA in indian ITR Form and how to use it ?
(5) How will i match the period difference of transactions of rental like 3 months different period in both returns i.e., 1st Jan.,2017 to 31st Dec.,2017 and 1st April,2017 to 31st March,2018 ? Will i need to consider consecutive 2 yrs returns to match ?
Asked 2 years ago in Income Tax
It is too much confusion here in the two statements :
(a) We can claim tax credit under DTAA only in the country of residence which is USA for me .
(b) Tax is paid in that country first where the income is originated and it is India because I have 3 houses in India for rental .
Please clarify :
(1) What does accrual basis mean and how can I show india rental income in US return on accrual basis without actually paying tax on it in US return ?
(2) If I show india rental on accrual basis in US return right now , will I be required to again revise the submit my US return after filing my India reurn in June of this year ?
(3) Can I just pay tax on my india rental in my US return right now as per US tax rates and show that amount of tax paid on india rental in my India return which is to file in June ?
(4) Which exchange rate do I need to use for all the conversion from USD to INR and INR to USD for showing the amunts in USA retun and India return ?
Asked 2 years ago
(1) Can anyone clarify about Which exchange rate do I need to use for all the conversion from USD to INR and INR to USD for showing the amounts in USA retun for india rent and later in India return for taxes paid in USA for india rent right now ?
(2) As I understand from the above clarifications that first I can pay tax on india rent in my USA return right now as per USA tax slabs being resident in USA because I reside in USA for 11 months every year and later in July of 2018 , I can take credit of these in-USA paid india rent taxes in my India return as NRI in India and it is irrelevant that rent is originated in India , ........... am I right ?
Asked 2 years ago