r2i forum

Hi,

I returned from US in July, 2010 and am in the process of filing my Indian Tax Returns for FY2010-2011.
Since I am an Indian Resident for that year, I need to report my US earnings from April, 2010 onwards. Before I seek professional advice on this (which I think would be tough to get in my city) I wanted to ask some members here as they may have already filed their returns.

What part of my US salary need I report for taxation purposes?
1. Gross income, ie. the gross pay that my company paid me.
2. Net taxable income after deduction of social security and medicare tax.

The other question is about how should I report the figures. Options are:
1. I've filed my taxes in US. From my tax return can I proportionally compute the income by considering the number of days of Indian financial year (April 1, 2010 to July 9th 2010.
2. Go over each PayStub I received from April1, 2010 onwards and report that income.

Thanks in advance,

-Saurabh

Hi Saurabhhk,

You returned to India in July, 2010, hence your residential status in India for AY 2011-2012 will be RNOR, under this status the US income to be reported in India will be as under:

1) Earned Income, if you received any salary or self employment income in USD credited to your US account, the income will be deemed to accrue and arise in India and will be liable to tax in India. Section 9 of the Income Tax Act, 1961 covers this income.

2) Passive Income, this income is not taxed in India as during the RNOR period only the income accrue or arised in India is taxable in India.

Hence if you any earned income in USD then only that income will taxable in India.

We provide assistance in both USA and India tax filings services from Pune. You can send us your details on [email][email protected][/email] or visit us at www.kkassociate.com

Regards,
KKA

saurabhk;390627Hi,

I returned from US in July, 2010 and am in the process of filing my Indian Tax Returns for FY2010-2011.
Since I am an Indian Resident for that year, I need to report my US earnings from April, 2010 onwards. 1. I've filed my taxes in US. From my tax return can I proportionally compute the income by considering the number of days of Indian financial year (April 1, 2010 to July 9th 2010.
2. Go over each PayStub I received from April1, 2010 onwards and report that income.

I believe that the income from April 2010 till july 9th (the day you landed in India) would not be taxed in India, if you are RNOR, which is very likely.
Only income for work done while in India would be taxable.

Hi, As KKAssociate pointed out, my income would be taxable. My question was about how to report the income and the taxes paid during the period April 1, 2010 to July 7, 2010.

-Saurabh

Hi Saurabhk,

The income earned from April 1 to July 9th will not be taxed in India, dbs are correctly stated that. It will be taxed in US only.

Regards,
KKA