Deductions & credits

1. Form 1116 needs to be filled out to receive credit for taxes paid to qualified foreign countries, such as India. For the steps, here is a post with two of my answers with pictures to get your to the forms and through the process.  See also, Where do I enter the foreign tax credit (Form 1116) or deduction?

2. Yes, The program will calculate the gains after the exclusion you mentioned. The program has many worksheets in the background doing all the work for you. In your forms, it will show the tax is from the worksheet  "Qual Div/ Cap Gn" which is used to calculate the tax.  

If the apartment you sold was a second home, it will appear on sch D and form 8949.

Here is a copy of the tax calculation from one of my fake returns for a single that sold a second home with a $40,000 gain: