For Instance…
Financial Year in India is 1st April to 31st March.
Financial Year (Tax Year) in US is 1st January to 31st December.
Segregating transactions in the following form :
- From 1st January to 31st December from the bank statement / investment statement.
- If more transactions have been undertaken, pass entries in computerised accounting software, then segregate it on start & end date basis.
- We are clear about the income to be aggregated in US tax return.
Tax Credit of the incomes taxed in India :
- For Indian incomes between 1st January to 31st March, taxes & Returns would have been filed, credit of taxes (not any interest or penalty) on that basis.
- For Indian incomes between 1st April to 31st December, credit on the basis of withholding tax in India (TDS) or advance tax paid. These advances taxes should be towards final tax liability.
