You are required to report your total worldwide income. You are required to report interest income received in India.
You would not be able to claim the foreign tax credit for the tax on interest income if you did not file your India taxes.
To claim foreign taxes on Form 1116, the tax has to be paid and owed.
As your tax would be refunded if you filed taxed in India, the foreign tax would not be allowed on Form 1116.
Frequently Asked Questions (FAQs) About International Individual Tax Matters (see FAQ 1 - worldwide ...
