@patnaik , thank you for the answers you provided.
Generally agreeing with my colleague @DaveF1006 on the content and the detailed instructions.
Now :
(a) you are correct , I was not aware of the changes exactly promulgated as of 07/23/2024. But my information ( on-line journals etc. not IT site ) is that the taxpayer can choose to apply the 20% tax with indexation of 12.5% without indexation. Therefore your Chartered Accountant found the path chosen to be more tax efficient.
(b) AS I have mentioned your foreign tax credit -- the allowable portion is going to be at most the US capital gain tax on the same foreign income -- because of double taxation clause in the US-India Tax treaty. Thus no matter what the Indian Tax burden settles down to be , the US tax computed on Schedule-D tax worksheet is all the benefit you are going to get.
(c) For US tax purposes and based on figures you have provided --- Basis in the asset US$180,000 and the sales proceeds being 99% of US$184,000 -- the gain would be US$ 182,xxx - US$ 180,000 = approx. US$2000.. Thus your capital gain tax at the highest bracket is no more 25% = US$500..
(d)Given the above , I think you perhaps need to get your CA to work out the Indian tax using both ways and see which benefits you most. I say this because of all the similar situations that I have seen here over the years, all using 20% TDS and indexing, has never fared this badly.
(e) Note that while the allowed foreign tax credit is only a portion, the rest is banked and can be carried back one year or forward for a numb er of years. But using it would require foreign income and foreign . Limitation regime of form 1116.
Please note the requirements of FBAR ( you have been diligent about it ) and also FATCA ( because of the amount that rested in your bank account > US$ 100,000 ).
Is there more I can do for you?
Namaste ji
pk
