@confusedabd , Namaste ji.
As mentioned above generally under article 19 section 1 & 2 , ONLY India is allowed to tax pension paid to a Non-Citizen of USA, residing in the USA. Please read the earlier quote from US-India Tax treaty / technical explanation.
I am also providing a page link from the IRS that talks about the use of form 8233 and exceptions thereto requirement. See --> Claiming tax treaty benefits | Internal Revenue Service (irs.gov)
near the bottom under "exceptions".
What this means is you enter the pension income under pension/IRA block, create a dummy 1099-R, using EIN of the payor as 00-1234567 or obvious dummy one like 12-345678. so you satisfy TubroTax checks.
Then under other income you generate a negative pension amount and in the comment/source field of the income enter " US-India Tax Treaty article 19 section 1 & 2"
This will show the amount of pension and zero it out based on the treaty.
NOTE -- in this I am assuming that you are a Resident but not a citizen of USA.
On your question about interest earning greater than the safe harbor amount --- note that depending on how much higher than the safe harbor amount the actual amount is . Form 1116 will recognize the total amount of taxes paid on passive income ( interest income ) but will limit the amount for the year to lesser of actual paid or allocated US taxes on the same amount ( the allocation is based on ratio of foreign source income to world income). Some time it is better/more beneficial to just claim the safe harbor amount ( while all income must be recognized , there is no requirement to recognize all taxes paid to a foreign taxing authority ).
Is there more i can do for you ?
Namaste ji
pk
