@jkbasak , Namaste Basakji
Since there is a tax treaty between India and USA, which defines taxes that under consideration of the treaty, the argument that (a) to reduce double taxation bite one should use Net income from sale ( i.e. after deducting the TDS ) will not survive a challenge a by IRS. IMHO, for cases where there is NO Tax Treaty, one may have a chance because the issue is not discussed; (b) the "savings clause" in most treaties allows each contracting party to administer tax rules as if the treaty did not exist for its own taxpayers.
Thus I think you will lose if you claim that your sales proceeds per US tax laws should be net of TDS.
Also note that TDS is only a temporary withholding -- it is not settled amount ( till your ITS has been accepted and agreed to ).
Don't understand 30% figure --- thought it is 20% with indexing basis and 12.5% with NO indexing. Please can you confirm with you Tax person in India ( this was brought up another poster with similar situation and so I had to update my knowledge )P.
Namaste ji
Is there more i can do for you ( either add here or PM me )
pk
