@TK_NJ , while I agree with my colleague's (@DianeW777 ) response that such receipts ( for having paid taxes to India ) would be applicable, going over your response:
(a) By saying that "TDS that was paid by the buyer ", I am assuming that TDS was withheld and taken out of the monies owed to you by the buyer (AND NOT that the buyer had agreed to pay the TDS on top of the agreed price of the sale );
(b) By including the total amount of taxes paid/to be paid to India on this sale as "Foreign Taxes Paid" and claiming FTC, may result in your having to file an amended return. This is because if there is any changes ( very/ somewhat likely ) in the Foreign Taxes Paid, you have make your return recognize the final figure -- even though your allowable credit may not change ( but your carried back/forward amount may ).
(c) Note that the Foreign Tax Credit allowable for the tax year is the lesser of Foreign Taxes Paid and US Taxes levied ON the SAME foreign income. Also depending on which capital gain computation you used in India ITR ---- Indexation with 20% tax or No-indexation and 12.5% tax--- the US gain computation may be different. Thus it is generally ( more likely ) that it is the US gain that should be used as the foreign source income on the sale.
(d) IRS will recognize the whole amount of foreign taxes paid and the un-allowed portion will be banked -- one year back or 10 year forward usage allowed.
(e) The receipts ( TDS document . Challans etc. ) are not sent to the IRS -- you just keep these in case of a challenge. Also keep record of exchange rate that you used.
(f) Generally air-travel expenses , especially foreign, for purposes selling / signing docs etc. related activities, will not be allowed as a deduction ( i.e. as a cost of sale process ). You would have a hard time justifying that you spent time only related to the sale and nothing else. Have no case law to support or negate this.
My general thought process is that you should ask for an extension and file the return ONLY when the ITR has been filed / accepted by the IT dept. However, in the event that you are likley to owe monies to the IRS/State, you may want estimate and pay-in ( along with the request for extension ) amount sufficient to avoid interest charges when you file the final return for the year.
Is there more I can do for you ?
Namaste ji
