Tds refund

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Praveenveldhi (Querist)
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23 July 2013 Dear sir
my friend have been doing job in US in TCS company for the last two years. he came india in january and get the salary 1,80,000(90,000pm) for the month of feb and march (same TCS company in india).
and my query is.... they deducted TDS Rs.150000/- what is his position could he get refund of TDS because 180000/- is below exemption limit.

Rupesh Jain

Rupesh Jain (Expert)
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23 July 2013 He file return as resident in india and show total income of india + outside india.
then calculate tax

if his tax iability below the TDS amount then he can receive refund otherwise he pay bal. tax due to he leave in india in last year 60 days or more and 365 days in last 4 years

he become resident in india for F Y 2012-13

Praveenveldhi

Praveenveldhi (Querist)
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23 July 2013
Tax already deducted in US for the months he has worked and the same deducted in india
how he get refund under double taxation relief

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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28 July 2025 Great question! Here’s how your friend can handle the TDS and get relief for tax paid both in the US and India under Double Taxation Avoidance Agreement (DTAA):

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### 1. **Determine Residential Status**

* As mentioned, since your friend stayed in India for more than 60 days in FY 2012-13 and at least 365 days in the previous 4 years, he is considered a **resident** for tax purposes in India.
* Therefore, his **global income (India + US)** is taxable in India.

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### 2. **Total Income & Tax Liability**

* Your friend needs to file income tax return (ITR) in India showing:

* Salary income earned in India (₹1,80,000)
* Salary income earned in US (converted to INR)

* Calculate total tax liability on global income as per Indian tax slabs.

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### 3. **Claim Relief for Tax Paid in US (Foreign Tax Credit - FTC)**

* India’s tax laws provide relief from double taxation under **Section 90** (DTAA) or **Section 91** (unilateral relief if no DTAA).
* Your friend can claim **foreign tax credit** for taxes paid in the US on income earned there.

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### 4. **Claim Refund of Excess TDS**

* Since ₹1,50,000 TDS has been deducted in India on ₹1,80,000 income (which seems very high), your friend should:

* File ITR declaring full income.
* Claim credit for US taxes paid.
* Compute actual Indian tax liability after credit.
* If TDS > tax liability, claim refund for excess TDS deducted.

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### 5. **Documentation for FTC**

* Attach proof of tax deducted in US (tax payment certificate or Form 16/26AS equivalent).
* Maintain documents related to US salary and taxes paid for scrutiny.

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### 6. **How to file for refund?**

* While filing ITR, report TDS details correctly.
* The refund will be processed by Income Tax Department after processing return.
* You can also mention foreign tax credit under Schedule FSI of ITR (for applicable forms).

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### Summary:

| Step | Action |
| ------------------------ | ----------------------------------------------- |
| Check residential status | Confirm resident status (already resident) |
| File Indian ITR | Declare global income including US salary |
| Calculate tax | Compute tax on total income as per Indian slabs |
| Claim foreign tax credit | Claim credit for US tax paid under DTAA |
| Claim refund | Request refund for excess Indian TDS deducted |

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If your friend needs help with calculating tax or filing the return correctly, I can help draft the computation or guide through the filing process. Would you like me to help with that?

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