Credit of taxes paid in usa

Tax queries 417 views 1 replies

Hi,

An assessee has filed his US Income tax return for year ended 31/12/11. As per the Double Taxation Avoidance Agreement between India and USA:

How much credit is available in India for US taxes paid?

How are Interest Income and dividend income earned in USA taxed in India?

The assessee has LTCG (-11632$) ie a loss. How will this impact his Indian Income tax return?

The assessee hax expired in FEB 2012 and has Retirement account(USA): $617500 AND Social Security(USA): $19808.Will these be taxed in India?

Please reply.

 

Replies (1)

As per my understanding, :

1. income earned/ received in USA shall be taxable in India only where the assessee is a resident and ordinarily resident of india for the respective financial year.

2. The credit for US taxes shall be claimed in India only when the taxes have been paid in USA and lower of taxes paid in USA or taxes due in India on the doubly taxed income.


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