Double Taxation India Interest and capital gains

[Nagaraj]

I am a US tax resident for 2024. I have interest income from deposits and capital gains from sale of mutual funds in India. But these sources of income are in India so the Indian govt will tax them. Under Double Taxation Avoidance Agreement (DTAA) treaty between the US and India, I should be taxed only once on this income. Given that I will be taxed in India, how do I avoid it being taxed in the USA

[DianeW777]

The US allows you to receive a tax credit or deduction depending on what you choose. Keep in mind that the credit maximum will be what the US would charge on the same income which could be less than the tax you paid to India. 

Begin by using the link below to enter your credit or deduction.

• Where do I enter the foreign tax credit (Form 1116) or deduction?