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US taxation in the case of NRI partner on share of profit from LLP in india

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My relative is US resident ( green card holder ). He is 50% partner in a LLP formed in india long back. Now he has retired from LLp and received refund of capital contribution  after payment of taxes by  the LLP  under section 45(4).

Question is the taxation on the part of US resident (i) in respect of amount  withdrawn of capital account on retirement  from LLP exempt in india  (ii)  tax is to be paid in US on  income of firm ( iii) if taxable in US , any  credit of taxes paid by LLP (in US resident partner return)  as per DTTA between India and US.

 

Replies (1)

US Tax Law prevails over India-USA DTAA , hence question about taxability in US needs to be seen from US Tax Act.

Also if income is taxable in US and tax is paid in India then surely credit of the same shall be available as per India USA DTAA.


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