What is my government pension from india counted as taxable income?

[confusedabd]

I receive government pension from india and pay taxes on it in india. I created dummy 1099-R based on @pk's guidance. I entered government pension info in Box 1, 2a and Box 7- chose 7. However, I noticed when calculating Federal tax return this foreign pension is counted what looks like regular income:

Income

Total Income: xxxxxx

Deductions: 15,700

Taxable Income: xxxx

Taxes: xxx

Under double tax treaty shouldn't this income be not taxed in US, how do I indicate I already paid taxes on this. 

[tagteam]

I will page Champ @pk for this. Please check back later.

[pk · Accepted solution]

@tagteam  I have answered  on another post and PM  -- thank you 

pk