• Tax filing for NRI returning to India

I was working in US on work visa (L1 visa) .And i had to return back to India on May 15 2018 (was on US payroll till June 13 2018) And from June 15 2018 onward i am working here on India payroll. 
I have to file my tax return in USA, my questions 
1. How should i file tax return in US for this financial year (Jan 2018 - Dec 2018), do i need to show my Income in India since June 15 2018 till Dec 31 2018 ? 
2. What is my residency status while filing tax return in USA ?
3. While filling income tax return in June 2019 in India, do i need to show income from USA ?
Asked 7 months ago in Income Tax from pune, Maharashtra

Welcome to India Sir,

 

in terms on Indian Taxation, for FY 2018-19 your status would be RESIDENT. You need to show  your Indian and USA income (Tax liability only for Indian income).

 

for USA, tax from Salary income may have deducted already and ask authority wheather need to submit return required, as per my knowledge, if you leaving country for good you may claim your deducted tax back. (Double check with one of the Consulant in USA.

 

i would love to assist on the same further.

Rajkumar Wagh
CA, Kolhapur
45 Answers

Not rated

Hi

For the US return for FY 2018, you are a resident of US.

For the Indian ITR fit FY 18-19, you are a resident of India.

Being a resident you need to report all your global income in the respective tax returns. You can claim FTC of taxes paid in US while filing ITR in India. Similarly, you can claim FTC of taxes paid in India while filing return of income in India.

The country of residence will provide credit for the tax paid in country of source but only to the extent of the incremental tax liability due to inclusion of such income in the total taxable income in the country of residence. 

 

1. Yes

2. Resident

3. Yes

Lakshita Bhandari
CA, Mumbai
3334 Answers
161 Consultations

5.0 on 5.0

Hi,

- As you are resident both in USA and India, you are required to show global income in both the returns and claim benefit of DTA in both the returns in the form of FTC.

 

- In India while filing ITR, you need to submit Form 67 along with ITR. Form 67 is for overseas income for which FTC will be claimed.

 

- Yes

- Resident

- Yes

 

Thanks

Vivek Kumar Arora
CA, Delhi
2789 Answers
128 Consultations

5.0 on 5.0

Since you are in India from June 2018 and also you have spent more than 182 days in India you are a resident of India for FY 2018-19. So the income earned in India will be taxed in India.

Don't know about how the US tax system works but as per Indian income tax you will have to pay tax on Indian salary in India. Now if your us salary will be taxed in India or not will depend on for how many years you were in US. So please provide that details.

The person filing your income tax in US just ask him to go through DTAA provisions for your income earned in India as you are Indian resident now.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
1808 Answers
16 Consultations

5.0 on 5.0

Dear Sir,

 

Please find below the responses :

 

1. Yes, you need to show your income in India since June 15 2018 till Dec 31 2018.

 

2. Resident.

 

3. Yes. 

 

In accordance with Rule 128, in order to claim FTC, the taxpayer is required to file following documents on or before due date of filing of return:

1. A statement of :

  • foreign income offered to tax
  • foreign tax deducted or paid on such income in Form No. 67

2. Certificate or statement specifying the nature of income and the amount of tax deducted therefrom or paid by the taxpayer :

  • From the tax authority of the foreign country
  • from the person responsible for the deduction of such tax
  • signed by the taxpayer

3. Proof of payment of taxes outside India.

 

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
2601 Answers
34 Consultations

5.0 on 5.0

Dear Sir,

 

Under the Income-tax Law, an individual will be treated as a resident in India for a year if he satisfies any of the following conditions (i.e. may satisfy any one or may satisfy both the conditions):

 

  • He is in India for a period of 182 days or more in that year;

OR

  • He is in India for a period of 60 days or more in the year and for a period of 365 days or more in 4 years immediately preceding the relevant year.

If any of the above condition is satisfied then the person is said to be Resident. 

 

A resident will be charged to tax in India on his global income i.e. income earned in India as well as income earned outside India.

 

So, you are considered an Indian resident for a financial year 2018-19 (spent more than 182 days in India) and liable to pay tax on your global income i.e. income earned in India as well as income earned outside India.

 

1. Yes.

 

2. Indian Resident.

 

3. Yes, you need to furnish Form 67 on or before the due date of furnishing the tax return of income for foreign tax credit claim.

Karishma Chhajer
CA, Jodhpur
1196 Answers
7 Consultations

5.0 on 5.0

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