Hello Everyone,
I have a query with respect to Foreign tax credit. I was a resident alien for 2016 and was deployed in US from my organization. US FY 2016 covers parts of FY15-16 and FY16-7 in India. I already filed income tax returns in India for FY15-16 and paid tax on passive income in Jan/Feb/Mar 2016 in India. Later pat of 2016 i.e. April to December, I further had passive income for which I paid advance tax in India before December 31 2016. The advance tax paid in India for April-Dec 2016 is far more than the actual tax paid in India on income generated between Jan-March 2016.
Q1) Can I claim FTC for tax paid as part of IT return of FY15-16 in India and as well as advance tax paid for April-Dec 2016 income?
Q2) Tax advisors are suggesting I can claim either one, as I can get tax credit either on paid or on accrual basis. Is this true ?
This way I will end up paying double taxes (in India and in US) for the income I generated in Jan-Mar 2016 in India. Please suggest alternatives ?
I understand there will be FTC carried forward for next year, but then I returned on Dec 31 to India so I cannot file resident tax returns in US for 2017.
I have a query with respect to Foreign tax credit. I was a resident alien for 2016 and was deployed in US from my organization. US FY 2016 covers parts of FY15-16 and FY16-7 in India. I already filed income tax returns in India for FY15-16 and paid tax on passive income in Jan/Feb/Mar 2016 in India. Later pat of 2016 i.e. April to December, I further had passive income for which I paid advance tax in India before December 31 2016. The advance tax paid in India for April-Dec 2016 is far more than the actual tax paid in India on income generated between Jan-March 2016.
Q1) Can I claim FTC for tax paid as part of IT return of FY15-16 in India and as well as advance tax paid for April-Dec 2016 income?
Q2) Tax advisors are suggesting I can claim either one, as I can get tax credit either on paid or on accrual basis. Is this true ?
This way I will end up paying double taxes (in India and in US) for the income I generated in Jan-Mar 2016 in India. Please suggest alternatives ?
I understand there will be FTC carried forward for next year, but then I returned on Dec 31 to India so I cannot file resident tax returns in US for 2017.
Comment