I won prize of US$ 3000 in crossword puzzle. The contest was organised by Robin Sargent Falcon Memorial Trust, Orinda, USA.
I received a Check of US$ 1821 along with a letter in which they stated that for prize winners who are not citizens of USA , they are required to withold 30% of the total prize amt. as U.S federal income tax and california state tax at 9.3% on the total amount.
In this case, as tax has already been deducted in USA, will i be having any benefits on the double taxation treaty between INDIA and USA. and how do i procedurally handle the reporting of prize money and the payment of tax?
please advise
CAclubindia
