@monikagoel , Namaste Monika ji.
based on your post and the questions articulated :
(a) I am assuming
1. that any dividends earned on these stocks have been recognized ( for US purposes ) even they were re-invested.
2. that your "taxable income" is post all the deductions allowable and not gross
(b) The taxes paid to India ( i.e. your LTCG US$ 3142 ) generally will be recognized dollar for dollar. But this is different from the allowable amount for the current tax year. The unallowed portion of Foreign Tax ( FT ) is available for carry back or carry forward. TurboTax will do this for you.
(c) While the Tax treat between US and India requires elimination/ reduction of double taxation, the way US achieves this is , by allowing a non-refundable Foreign Tax Credit ( allowable FTC ) that is an amount that is lesser of the actual amount paid or an allocated US tax on the doubly taxed income. Thus what you are allowed at most is zero US tax on the Foreign Source Income.
Since TurboTax will do all the computations for you, all you have to do is make sure that you entered the proper numbers. Note that your basis in the stocks is based on dollar of the day at the time of purchase.
Does this make sense or is this an exercise in confusing you more ( lol ) ?
Is there more I can do for you ?
Namaste ji
pk
