r2i forum

Hi,

I have 2 questions.
I am r2i to Bangalore in Nov 2010 and starting job latest by Dec 1 (My status is H1B)
(My status for 2010-11 tax year in India is NRI and I have RNOR status for next 2 years, till March 2013)
1. Where do I pay taxes for the Indian income for month of December?
I read in forums that when I file US (fed and CA state) taxes for 2010, I show only US income and get some foreign tax credit or FEI exclusion or something like that. But then by the April 15,2011 deadline to file US taxes, I would not have paid taxes to Indian government on my Dec2010 income, as their fiscal year only ends in March2011. Please point me to any thread which already has a solution.

2. I am getting paid a flat amount of $10K(INR 4.5L) for my relocation. I am supposed to use that for air ticket, moving expenses, etc. It will be paid in my first month's rent (Nov 2010 or Dec 2010). I assume this amount is taxed (either US or India - where?)
Also, taxed upto what extent? Which receipts can I show to reduce tax?
I am selling all furniture and electronics, so no container-shipment for me. At most, I will send some stuff by air cargo (maybe max $1K expense). My major expense is paying penalty to my apartment for breaking the lease (around $2.5K) Do I get that amount tax-free? Please tell me how to minimize tax on my relocation amount.

Thanks.

Gurus, please help. If this question is already answered, please point me to the thread with solution

Foreign income exclusion is about income. So deduction of tax does not come into picture.

Other questions, you will have to wait for some expert member.