Hi:
- I have paid tax in India on both interest income on 3 bank accounts and also capital gains. Since once you file the India return, the tax payment calculation is for the overall income (Ex: after standard deduction, credits..etc.,) and there is no way to exactly connect how much tax was paid for each of the bank account interest income and how much for capital gains...etc.,. Hence, while taking credit for the taxes paid in India how do I go about?. It seems in the US tax return, to take credit for taxes paid in India, I have to specify how much tax paid for which account. Am I right? If so, it will be impossible to do it and I will be subjected to "Double taxation"
- Also, Govt. of India pays Interest on any excess taxes paid over the actual final tax liability per tax return calculations and where should I show that interest income. Do I need to show it under Interest income section? Just to highlight, It is not income from a Bank or financial institution where there is an account kept but by the Govt. of India tax department for interest earned due to excess tax payment.
Thanks in advance for your help in this matter.
