@seccam , what I get from this tread is that
(a) a US person, sold capital assets ( what type ? if stocks are these also listed on US exchange or only in India? etc. etc. ) in India through local broker/investment house
(b) Tax payer also has interest income from bank deposits ( savings / CDs or what ) in India.
Generally these types of incomes are treated just as if these were domestic earnings i.e. Interest earnings ( even with absence of 1099-INT) are reported just like if earned these in the US ; ditto for dividends ( no 1099-DIV and generally these are not qualified dividends ) and for Capital assets ( no 1099-B and therefore are assumed to be not covered i.e. no basis reported to IRS by Broker ).
Reporting these types of incomes as "other" is not correct and the curative would be to file an amended return correcting these errors -- IRS expects incomes to be categorized as per their individual character. For example in the case of US earnings, if you enter your interest income as "other" and not as interest, the Automatic Under Reporter would recognize all the incomes reported and send you CP2000 that you did not report interest earnings. .
For Capital gains ( i.e. stocks/bonds sold in India ), you have report gross income, basis ( i.e acquisition cost including any commissions charged then at then exchange rate) , acquisition date and disposal date. You must have records to prove this , in case challenged. The US taxes are based on this and is totally independent of India tax laws.
Then if the taxes paid to India on all these foreign earnings ( i.e. interest, dividend, net sales profit of stocks/bonds before taxes--- sales proceeds LESS US basis plus any sales expenses/ commissions etc. converted to US $ on the actual date monies made available to you or the sales date ) on form 1116 as foreign income and the foreign taxes paid against this -- if you want foreign tax credit . Note that the available foreign tax credit for the year is multiplied by the ratio of foreign earnings to world income --- thus for US person with US income it is never 100%. . I can provide details on this if you need.
I hope this clarifies what you have to do for the 2020 return and you must do for 2021.
Namaste (or Salam aliqum )
pk
