30 May 2009
hi friends, one of my friend is working in indian software company. he was sent to USA in 2005 by his company. he came back to india in Jan 2009. so he was NRI till PY 2007-08. since he was not confirmed whether he would come back to india in PY 2008-09, he paid the tax in USA. when he came back to india, his company again deducted the tax on his total income. Now the query is, whether credt will be available for tax paid in USA under DTAA with USA and india. if yes, what is the procedure to claim the credit of tax paid in USA
30 May 2009
Remember one thing that a person can be resident more than one country as the conditions are different for every country. As he is becoming Resident in India in 2008-09 in India, it does not mean that he is non-resident in USA.
30 May 2009
As he is resident in 2008-09, then he is liable to file income tax return in India and for the USA income you need to make calculations as per DTAA with USA.
CAclubindia
