Hello Sir, I am a US citisen living and working here in India on OCI. Please advise me weather I do returns filing just like how others in India do? Or are there any additional things to do? While I understand I also have to file returns in US, I would first do in India and take it to file in US for overcoming double taxation. Please advise. Also, how can you help and how do I reach you for a phone call. Thanks.
Ans: Hi Naren
The requirement to file tax returns in India is based on your residential status and the volume of income. Hence, if you are currently a resident of India (based on number of days of stay in India) and your income is exceeding the threshold limit mandating the filing of tax returns then you definitely need to file the same.
There would be a gap in the period covered for filing tax returns viz., say India's financial year is between April 1, 2023 to March 31, 2024 whereas USA follows the calendar year concept i.e. January 1, 2023 to December 31, 2023.
When you prepare your data for USA, you would need to realign the income and the tax to validate the tax credit that could be claimed in USA