Thanks for your guidance @DaveF1006
Let me add scenarios with tax withholding as well to the previous example I took.
For April 2023 - March 2024 period I have $10000 foreign taxable income and $500 were withheld in taxes each quarter bringing total tax withholding to $2000.
1. If I do not file tax return in India for this period, can I claim tax withholding amount as taxes paid for cash basis as foreign tax credit on US 2024 return? If yes, how much of total tax withholding can be claimed?
2. If I file tax return in India for this period and receive a refund of $900, can I claim $2000 as foreign tax credit on cash basis? Or will it be $1100?
