r2 in Nov2010, where to pay tax for Nov-Dec income + tax on relocation amount?
Posted: Tue Sep 21, 2010 3:26 am
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.
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.