turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

There was a dual tax deduction in USA and India but I have already filed my taxes in USA. how can I file the taxes again correctly to get my tax return?

My wife travelled to the USA on Sep 2017 on deputation (H1B Visa) and worked there until Dec 2020. After coming from USA, she continued working from India on Indian Payroll. We filed the 2020 Taxes in the US based on the W2 generated in the US and reported all the US income along with Interest income earned in India. But later when we received our form 16 in India, we noticed that there was a tax deduction of almost 100,000 INR from Indian Salary which was considered based on the salary calculated from Apr'20 to Mar'21 even though she received the Indian Salary from Dec'20 to Mar'21 only (Salary eared in India for this period was almost 200,000 INR).
I asked my employer to get justification for the tax deducted and they mentioned that:
"Dear Associate. As per our telecom communication As you went on deputation and not on employment The high income tax is due the change in your residency status. you are considered as resident Indian for the current FY 2020-2021 and tax has been calculated with effect from April/2020 Hence your annual gross is calculated from Apr 2020 to Mar 2021. As per the below income tax act , if you are coming under any of the clause below then your entire financial gross income is calculated and income tax is deducted as per that. same will be deducted till Mar 2021 Kindly note as per the Income tax Act, 1961: Indian residency status is defined as per the below given criteria. a. An associate is in India for 182 days or more during the current financial year. OR b. An associate is in India for 60 days or more in the current financial year and for 365 days or more in the preceding four financial years If an associate departs from India on a long-term assignment, then the residency status is as per point (a). If an associate returns to India, then the residency status is as per point (a) or (b) whichever condition is satisfied. In case of multiple arrivals and departures in/from India, the residency norm applicable is as per point (a). Kindly note that you would be able to know your tax liabilities
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

There was a dual tax deduction in USA and India but I have already filed my taxes in USA. how can I file the taxes again correctly to get my tax return?

You file an amended tax return for 2020 in the US and claim credit for the foreign taxes paid in India.

The tax paid in India should be for the year 2020

You will have to include the income earned in India for 2020.

 

Click on the link for more information

 

Foreign Tax Credit

 

Amended //tax return

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies