Thank you so much for your response. That really helps. So you are saying, even when I was employed with another entity in India, I will still have to pay self employment tax and thats the reason I am being asked to pay taxes.
Now coming to my second point, if I go for foreign tax credit (and not foreign earned income exclusion), where do I enter the Foreign income? Is it only in the section of Deduction and credit section of foreign tax credit or somwhere else too?
