I am asking this question for 68 years old female who is US citizen but since May 2019 she has lived in India and has not returned to USA for a single day.
She has earned income from stock trading in India and has some interest income but that total income is less than standard deduction of $14050 (she is senior citizen so higher amount) .
So here are questions.
1. Does she still need to file tax return in USA even though total income is less than standard deduction amount?
2. I guess yes, but earning from stock market trading which includes either day trading or short term trading (holding less than a year) is considered self employment income (or business income?) In India it is considered business income.
3. If she files return in USA and due to having less than std. deduction income - if she does not pay any taxes - does she need file tax return in India and pay taxes ? in India anything above 3 lac = about 4000$ she has to pay taxes.
4. My understanding is she has to file taxes in both countries. When she files in India and under India slabs - she has to pay about 2500$ in taxes - but the same income is excluded for US income tax purpose (std. deduction) So how can she avoid paying taxes in India? Can she claim that because I filed in USA and that I was not suppose to pay any taxes as per US laws ..I don't owe anything to Indian income tax authorities?
Thanks ..in advance. I already know this question is difficult.
