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Trading in US stock must be reported as a business unless you have only a few trades (say if only 2-3 trades) in the financial year.
As per the tax laws of India, sections 90 and 91 of the Income-tax Act deal with the concept of FTC. Section 90 discusses claiming of FTC in a case where India has entered into a Double Taxation Avoidance Agreement (DTAA) with another country.
Under these sections, if the taxpayer is a resident of India, and he has paid taxes outside India, he can claim a credit of such foreign taxes paid against his tax payable in India.
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:
- A statement of :
- foreign income offered to tax
- foreign tax deducted or paid on such income in Form No. 67
- 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
- Proof of payment of taxes outside India
We may assist you in entire procedure.