Salary income in india and us

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Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2015 Sir,

I was leave India for employment in US on 30 April 2011 and returned India on 15 August 2014.
So in A/Y 2014-15, i was resident in India and also resident in US, because the US TAX Period is Ist jan to 31st DEc. I have filed the US return and file the ITR 1 in india but not shown the US income in ITR. So Please advise me to how to incorporate income as well as Us tax paid in ITR.

Suitable ITR for this issue?

How to Proportionate US tax because US and Indian Tax period is different?

Thanks

Nikhil Kaushik

Nikhil Kaushik (Expert)

17 June 2015 you need to file ITR-2. you need to claim credit for taxes paid in US under section 90

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2015 Thanks Nikhil,

India have DTAA with USA so as per my view sec 91 applicable.

And i was received a refund of $ 4702 in arpil 2014, so its is account for in 2013-14 return or 2014-15 return, because refund is received next year ie. Financial year 2014-15 and i am filing the revised return of financial year 2013-14

Nikhil Kaushik

Nikhil Kaushik (Expert)

17 June 2015 section 91 is used for non-dtaa cases.

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2015 Thanks nikhil you are right.

please give me the answer of other details.
Is requirement of Tax residency certificate?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

22 July 2025 Great questions! Here's a clear breakdown for your situation:

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### 1. **Which ITR to file?**

* Since you have foreign income and assets, **ITR-2** is the correct form (not ITR-1).
* ITR-2 allows you to report income from salary (India & abroad), capital gains, foreign assets, and foreign tax credits.

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### 2. **Declaring US Salary and Tax Paid**

* You need to disclose your **global income** as you are resident in India for AY 2014-15.
* Include your US salary income under **“Income from Salary”** or “Income from Other Sources” as applicable.
* Convert US income and tax paid into INR using the **telegraphic transfer buying rate** published by RBI on the date of receipt or average rate for the year.

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### 3. **Claiming Foreign Tax Credit (FTC)**

* Since India has **DTAA with US**, you can claim credit for tax paid in US under **Section 90** of the Income Tax Act.
* You need to file **Form 67** online before filing your return to claim FTC.
* FTC can be claimed only against the Indian tax liability on the same income.

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### 4. **Proportionate US Tax Period**

* US tax year is Jan-Dec, Indian FY is Apr-Mar.
* You need to **proportionately compute income and tax** for the Indian FY.
* For example, for FY 2013-14 (Apr 2013 – Mar 2014), include US income from Jan 2013 to Mar 2014 and proportionately compute US tax paid.
* Use IRS documents or your tax return to find income and tax for these periods.

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### 5. **Tax Refund Received in Apr 2014**

* Refund received in FY 2014-15 relates to excess tax paid in US for AY 2013.
* As per Indian tax principles, include income and tax paid for the year it relates to.
* In this case, you can adjust or disclose the refund while filing/revising ITR for FY 2013-14.

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### 6. **Tax Residency Certificate (TRC)**

* Yes, to claim relief under DTAA and to avoid double taxation, you **must obtain a TRC** from US tax authorities.
* Submit the TRC along with Form 67 to Indian tax authorities.

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If you want, I can help you draft a step-by-step filing process or a sample Form 67. Would that be helpful?

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