@nitingupta agreeing with my colleague @vithalanin for his excellent response to your post and would just like to add:
(a) generally passive incomes like rent , interest, dividend should be allocated as and when received. Thus if it quarterly credited to your account , then yes you can use quarterly allocation. I do recognize that while Indian tax year runs from April 1st of one year to March 31st of the next year, most rental agreements / raises etc. are based on calendar year and so must be allocated /recognized correctly for US tax purposes. Ditto for Interest earnings ---recognize / allocate as credited. Dividends should be based on ex-dividend dates.
(b) Sale / alienation of capital assets like residential property must be based on when actual sale occurs not allocated.
(c) For Foreign Tax Credit, while TDS is often used but that may lead to having to file an amended return when the Indian IT is settled/finalized ,. esp. given the current dual method of residential gain taxation ( Basis indexation with 20% or no-indexation with 12.5% ) leading to correct figure only after IT is filed and accepted.
Namaste ji
Does this make sense ?
Is there more one of us can do for you ?
pk
