How to show Indian Income tax refund in US Tax?


(Anonymous) #1

Hi Anil,
I got that I can claim my taxes paid in India on my US tax returns as credit and not claim any tax refund in India.

But say I was to have more than the taxable income in India (2.5lks) and require to file Indian tax returns as per the Indian tax law - how do I handle that while filing US tax returns?

(Anil Gupta) #2

In that case, you can file Indian ITR and claim refund in India. Do not claim the tax refund as foreign tax credit in US tax return.

The idea is to pay tax either in India or USA to be on right side of law.
If you claim foreign tax paid credit in US and then claim Indian tax refund, you can’t really justify your action if they come auditing your case.

Does that answer your question?