foreign income

Forum|Forum|2 years ago
March 6, 2024
1 reply
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Do I have to report foreign income (in India) while I was a resident of US for tax purposes?

I have foreign income from the following sources:
a) interest on bank deposits held in india

b) bonds of indian companies issued in india

c) dividends on shares of indian companies listed in indian stock market

d) profits on sale of shares of indian companies listed in indian stock market

If the answer to above is yes, how is the double taxation (in US + India) mitigated? If the answer to above is no, will I have to pay tax in US if I remit any of the above money to US?

Ask the Experts - MetLife III - Mar 2024

JamesG1

Level 15

Yes. Page 1 of the IRS US Tax Guide for Aliens states:

Resident aliens are generally taxed on their worldwide income, the same as U.S. citizens. Nonresident aliens are taxed only on their income from sources within the United States and on certain income connected with the conduct of a trade or business in the United States.

You may be eligible for the foreign tax credit. See here.

The India - US tax treaty may also provide relief. See here.

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