r2i forum

Free Promotion: KKA answers your tax questions.

Tax Information program for US personal taxes through kkassociate.com

At the onset we wish you all a very good year ahead.

We are pleased to announce that KK Associates (KKA) a US and India based tax firm, has agreed to provide answers on US and India tax questions free of charge, for R2IClub members until June 30[SUP]th[/SUP], 2015.

KKA offers tax planning, preparation, and advisory services to US Expats and NRIs. The firm consists of a team of CPAs and CAs. The firm has its head office in Pune and with branches in Bangalore and Mumbai in India and Kaysville, Utah in USA. You can read more about the firm at www.kkassociate.com or call us on +91 98231 49491 for more details.

1. The promotion gives opportunity to our members to get their tax questions answered in the light of upcoming US tax season.

2. The questions should be related to USA or Indian taxes and should be posted in this thread. "Free Promotion: kkassociate.com answers your tax questions till June 30".

3. Members who wish to directly contact kkassociate.com firm, may send their questions to [email][email protected][/email] (Limitation - One email per member please). Please mention your r2iclub userid in your email.

Conditions of Usage:
1. One email or post per member (to give enough opportunities to every one)
2. Please provide as much details as possible to describe your tax situation to answer your tax questions correctly.
3. Tax questions must be related to current real life tax situation and not hypothetical questions.
4. Should be related to USA and / or India taxation and not any other country.

Thanks for this initiative R2IClub and KKAssociates.

I'm copying over the question I'd posted in U.S Tax thread. This is regarding my husband's stock options.
_____________________________________________________________

I bought shares of my company which trades in the NYSE while I was in India through the Employee stock program.The taxes for the purchase were deducted from my India income.

I am now a US employee for the same company and am planning to sell these shares now. Just wanted to understand what are the India and US tax implications if I sell these stocks while residing in the US. Would there be double taxes or do I have to pay taxes only in India?

As per this article, if the shares are sold while residing in U.S, U.S tax is there on the gain even if it's long term. There is no long term capital gain tax in India.
http://timesofindia.indiatimes.com/n...w/12456755.cms

But couple of people, including the tax consultant here says there is no U.S tax since the shares were purchased in India.

Could you please clarify what kind are the taxes involved here. Thx.

Thank you KKAssociates for the initiative. My wife did her bachelor's and MBA from India before she came to US on H4 visa. Here she has enrolled in a interior design graduate program.

Can you please clarify if she is eligible for American Opportunity Tax Credit? If yes, how and if not, why? I have been reading about this online and haven't been able to find a concrete answer. Also, if she is not eligible for AOTC, can I claim any other credit for her tuition and other education related expenses? Thanks

Dear Member,

Assuming you being resident of United States, you need to report your global income, hence the Capital gains arising from Sale of Shares which are US Stocks will be subject to US Capital Gains. Based on the 1099 issued by the Financial Institution you will be reporting the same your Tax Returns.

Though the shares are purchased in India, the taxes paid in India is only on the Compensation portion which is received by you as a result of stock given to employees at discounted rates.

I hope this information helps, you can send us more details on [email][email protected][/email] or visit us at www.kkassociate.com

Regards,
KKA
US and India Tax Advisors and Filers.
www.kkassociate.com

Plan2010;592758Thanks for this initiative R2IClub and KKAssociates.

I'm copying over the question I'd posted in U.S Tax thread. This is regarding my husband's stock options.
_____________________________________________________________

I bought shares of my company which trades in the NYSE while I was in India through the Employee stock program.The taxes for the purchase were deducted from my India income.

I am now a US employee for the same company and am planning to sell these shares now. Just wanted to understand what are the India and US tax implications if I sell these stocks while residing in the US. Would there be double taxes or do I have to pay taxes only in India?

As per this article, if the shares are sold while residing in U.S, U.S tax is there on the gain even if it's long term. There is no long term capital gain tax in India.
http://timesofindia.indiatimes.com/n...w/12456755.cms

But couple of people, including the tax consultant here says there is no U.S tax since the shares were purchased in India.

Could you please clarify what kind are the taxes involved here. Thx.

Hi KKA

Thanks for your efforts. I am an US citizen and currently work for a MNC in India. I sold stocks in US (options from my US employer whom I am currently working in India) in this current FY year 2014-15. But I have been in US for almost all of this FY year. Based on my calculations, it looks like my physical presence in India for this FY year Apr 2014-Mar2015 is going to be to 49 days. Since it is less than 60 days, I am assuming my Indian tax status will be NRI. Am I correct? Do I have to report the stock earnings (Capital gains) in my Indian Tax return for FY year Apr 2014-Mar2015. Appreciate your help.

usaind;593384Hi KKA

Thanks for your efforts. I am an US citizen and currently work for a MNC in India. I sold stocks in US (options from my US employer whom I am currently working in India) in this current FY year 2014-15. But I have been in US for almost all of this FY year. Based on my calculations, it looks like my physical presence in India for this FY year Apr 2014-Mar2015 is going to be to 49 days. Since it is less than 60 days, I am assuming my Indian tax status will be NRI. Am I correct? Do I have to report the stock earnings (Capital gains) in my Indian Tax return for FY year Apr 2014-Mar2015. Appreciate your help.

Got more details related to my original question so wanted to update my question with relevant details. The brokerage firm in US sent me statement which says the tax is deducted in INDIA (not Federal) and my indian MNC company said the stock earning is added into my indian salary head as perquisite income and they deducted TDS for it. So the indian tax is already deducted but not the US taxes. I will obviously report this income in my US tax 2014 but my question is should I claim credit in my US tax return for tax paid in India or Pay US tax for the transaction and use that to recover the TDS from Indian IT when I file indian taxes for 2014-15? How does my NRI tax status in India for FY 2014-15 help in all of these matters? Hope to get an answer from you. Thanks in advance.

How to find out land cost of Flat?

I have a rental flat in Pune which I put on rent last year. I know how much I paid but I don't know the land cost. How do I determine the last cost? Land cost is used for depreciation purpose.

Thanks in advance.

Dear usaind,

Since you are Non Resident of India, you just need to report the income accrued and arised in India, the US Stocks options would not form the part of your total income in India while filing your FY 2014-2015 India Tax returns,

Regards,
KKA
US and India Tax Filers and Advisors
www.kkassociate.com

usaind;593384Hi KKA

Thanks for your efforts. I am an US citizen and currently work for a MNC in India. I sold stocks in US (options from my US employer whom I am currently working in India) in this current FY year 2014-15. But I have been in US for almost all of this FY year. Based on my calculations, it looks like my physical presence in India for this FY year Apr 2014-Mar2015 is going to be to 49 days. Since it is less than 60 days, I am assuming my Indian tax status will be NRI. Am I correct? Do I have to report the stock earnings (Capital gains) in my Indian Tax return for FY year Apr 2014-Mar2015. Appreciate your help.

Dear sks74,

Land is a non depreciable asset. Only Building is depreciable.

Regards,
KKA
US and India Tax Filers and Advisors,
www.kkassociate.com

sks74;593616How to find out land cost of Flat?

I have a rental flat in Pune which I put on rent last year. I know how much I paid but I don't know the land cost. How do I determine the last cost? Land cost is used for depreciation purpose.

Thanks in advance.

kkassociate;594580Dear usaind,

Since you are Non Resident of India, you just need to report the income accrued and arised in India, the US Stocks options would not form the part of your total income in India while filing your FY 2014-2015 India Tax returns,

Regards,
KKA
US and India Tax Filers and Advisors
www.kkassociate.com

Hi KKASSOCIATE

Thanks for the reply. Could you please provide your recommendation for the following? I hope you will not consider this a new question since I updated my original question with below as soon as I got more details :)). Thanks a lot for the help. This is much appreciated.


"Got more details related to my original question so wanted to update my question with relevant details. The brokerage firm in US sent me statement which says the tax is deducted in INDIA (not Federal) and my indian MNC company said the stock earning is added into my indian salary head as perquisite income and they deducted TDS for it. So the indian tax is already deducted but not the US taxes. I will obviously report this income in my US tax 2014 but my question is should I claim credit in my US tax return for tax paid in India or Pay US tax for the transaction and use that to recover the TDS from Indian IT when I file indian taxes for 2014-15? How does my NRI tax status in India for FY 2014-15 help in all of these matters? Hope to get an answer from you. Thanks in advance."