Thank you JeffreyR77 for your reply. I appreciate it.
1. If we don't file taxes in India, we could take a credit on Form 1116. Am I right? Taxes are already taken out at the source by the bank in India.
2. I don't understand this statement: "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."
3. Since our income is less than $3,500/year, no need to file taxes in India. If we need to receive a refund, need to file taxes.
My question is, which scenario is better-filing taxes in India and receive a full refund or don't file taxes in India and receive a foreign tax credit here for the taxes paid in India. Regards, Dabu.
