laks
Level 2

Deductions & credits

Dhanyavad PK-ji for explaining the complicated situation so nicely. 

It seems odd that the Indian tax code, to the best of my knowledge, does not permit depreciation to be claimed on personal rental assets while the mere act of renting a property allows uncle Sam to dip into your pocket and claim regular income on the depreciation.

One final question. The tax cycles for India goes from Apr 01 thru Mar 31. So the final computation of the Indian  tax will be done after the US Tax year. So do I need to wait until US Tax year 2025 to claim the foreign tax credit ? Thanks

 

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