Yes, I am employed seasonally by TurboTax. Your assumptions are correct. You would need to only report the one month's of Indian income earned in January and calculate the tax paid for that month.
Since your Indian tax year is from April to March and if you worked through Jan, this means you worked in India for 10 months during your tax year unless I am missing something. To calculate the Indian tax levied for Jan, you should divide by 10 and not by 12 to receive a more accurate tax credit. Regardless though, you would report gross income and taxes in your US return as you have mentioned. Turbo Tax does not make this calculation automatically.
Be sure you keep all of your calculation's and a transcript of this post just in case if you are examined by the IRS. More documentation is best because the IRS looks at these type of cases favorably if every key issue is documented and accounted for. Not saying you will be examined but better be safe then sorry.
Please reach back to us as often as you need to because we are here to help.
@p_r_s
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