Newborn in USA for Indian Parents - Clarification Requested

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Hi All,

I am an Indian citizen staying in NY in H1 B visa along with my spouse (H4).
We are expecting our 1st baby in Feb 2017 in USA and we are having few questions on our newborn baby's citizenship. Please guide -

1) If I apply US PP and PIO card for my kid, he/she...

[Batukbhai Vadgama]

My relative here in London has very old Indiian Passport which is ,CANCELLED, PASSPORT ISSUED ON 22.8.1951

ON WEB PAGE IMMIGRATION HELP. UNDER SURRENDUR OF PASSORT/REVOKING SAYS, NOT NEED TO SURRENDER
BUT YOU HAVE TO PROVE AND JUSTIFY ABOUT CANCELLED PASSPORT.

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