Tax Paid in USA

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Hi Pankaj,

I was in USA(Aug-10 to Dec-10) and I paid $4300.00 Tax in USA. Can you please tell me how can I get relief of this tax amount in India? and how can I file my income tax return?

I had shown in amount in u/s 90 & 91 in ITR but still income tax department asking for this tax amount.

Thanks, Ashvin Dalwadi

1 Answers

As your were in India for majority of year, your whole global income would be taxable in India. You would get refund on tax paid in US. For that, you would need to file return in US and they will issue refund for whole tax paid there. This refund cannot be issued by Indian income tax department.

There are many tax firms in US which helps in income tax filing for Indians, they may take some commission from refund, but they will help you get back refund fast.

Hi Thanks for your reply but my query is different.

My query is where I will have to show tax amount which I paid in USA in ITR form to get relief. Because I will not get full amount refund from USA govt. and in India I will have to pay tax on India + USA salary so the tax which I paid in USA I should get relief Like Under section 90/91. (else I will have to pay very big tax amount)

Thanks...

Where a resident of India derives income which, in accordance with the provisions of this Convention, may be taxed in the United States, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in the United States, whether directly or by deduction. Such deduction shall not, however, exceed that part of the income tax (as computed before the deduction is given) which is attributable to the income which may be taxed in the United States.

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