DTTA on property sale as NRI

[Assam_Bhayya]

2 hours ago, Moon_Walker said:

He is right you file your tax returns in US for global income which includes income from India too like rentals or interest from FDs etc.

+1

 

3 hours ago, manamthoupule said:

I have sold a property India.
I have bought the property for 1cr and sold for 1.2cr within a year. I have 20 lakhs capital gains and paid around 35% (around 7 lakhs) TDS on the profit in India.
Have a question around DTAA.

My tax person in USA is saying I will get some refund from IRS since my tax rate here is less than India. I paid 35% TDS in India, so he is saying I will get refund from IRS. Is this correct ? I know we can claim credit for taxes paid in India but do we get refund back from IRS for extra tax paid in India ?

I couldn't find any details online about getting refund in USA for tax paid in India.

Can someone please confirm this ?

Just consult a tax filing CPA, not desi ones run from India. Ikkada known references tho local CPAs will guide you. India lo pay chesina taxes, incomes, filing anni lekkalothi theskuni file chesthar IRS ku. 

[TechSri]

1 minute ago, manamthoupule said:

@TechSri I haven't yet paid taxes in India but when we sell property as NRI, buyer will deduct TDS before paying us. So short term gains TDS will be around 35% in India for NRI. India will tax us since the property is in India. We also need to report that when filing taxes in USA.

Ok then your tax filer is right. Foreign tax credit apply avutundi usa tax filing lo. 
 

buyer TDS deduct chesukovadam ante, oka 30% selling price kante thakkuva pay chesada meeku. Athanu tax filing time lo 30% TDS kosam aapinanu ani chuyinchukovala?

[Assam_Bhayya]

2 hours ago, Jatka Bandi said:

akkada question adi kaadu. For a tax withholding made by Indian govt, the consultant claims this member will get a refund from the US govt.

istharu, global income ni consider chestharu, cheyali kuda. If your not sure, just hang on. You'll get more details here.

 

[Assam_Bhayya]

2 hours ago, Jatka Bandi said:

baa, simple logic. Teleeka adugutunna. Pakka desam teesukunna dabbuki, akkada ayina kharchuki, inko desa janabha enduku istaru?

 

2 hours ago, Jatka Bandi said:

akkada question adi kaadu. For a tax withholding made by Indian govt, the consultant claims this member will get a refund from the US govt.

https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-about-international-individual-tax-matters#foreign

Foreign earned income exclusion (Form 2555)

[manamthoupule]

1 hour ago, TechSri said:

Ok then your tax filer is right. Foreign tax credit apply avutundi usa tax filing lo. 
 

buyer TDS deduct chesukovadam ante, oka 30% selling price kante thakkuva pay chesada meeku. Athanu tax filing time lo 30% TDS kosam aapinanu ani chuyinchukovala?

@TechSri I have bought the property for 1cr and sold for 1.2cr within a year. I have 20 lakhs capital gains and paid around 35% (around 7 lakhs) TDS on the profit in India. This TDS will be paid by buyer against Seller PAN. Buyer is responsible to pay TDS on seller behalf.

[manamthoupule]

1 hour ago, Assam_Bhayya said:

+1

 

Just consult a tax filing CPA, not desi ones run from India. Ikkada known references tho local CPAs will guide you. India lo pay chesina taxes, incomes, filing anni lekkalothi theskuni file chesthar IRS ku. 

@Assam_Bhayya I'm going with HR Block. But just want to be sure. Looking for suggestions from people who faced similar scenario.

[manamthoupule]

LTT. Looking for suggestions from people who sold property in India and repatriated money to USA.

[manamthoupule]

I think once I file taxes in India I will get some of the TDS back since final tax in India is calculated at slab rates.

So

1) I file taxes in India first and wait for refund from Indian income tax department.

2) Then include the capital gains amount in US tax filing and claim credit in USA for taxes paid in India ?

I think this way I'm taxed correctly in both countries. Can someone confirm if my understanding is correct ?

[manamthoupule]

Just now, manamthoupule said:

I think once I file taxes in India I will get some of the TDS back since final tax in India is calculated at slab rates.

So

1) I file taxes in India first and wait for refund from Indian income tax department.

2) Then include the capital gains amount in US tax filing and claim credit in USA for taxes paid in India ?

I think this way I'm taxed correctly in both countries. Can someone confirm if my understanding is correct ?

@Assam_Bhayya @TechSri 

[Assam_Bhayya]

1 hour ago, manamthoupule said:

@Assam_Bhayya @TechSri 

I guess you don't have to file India taxes. You need to show/calculate your overseas income for 2023 FY(that is Jan-23 to Dec23) while filing US taxes to IRS.

 

 

[manamthoupule]

1 hour ago, Assam_Bhayya said:

I guess you don't have to file India taxes. You need to show/calculate your overseas income for 2023 FY(that is Jan-23 to Dec23) while filing US taxes to IRS.

 

 

@Assam_Bhayya We need to file taxes in India if we have income more than 2.5 lakhs as NRI.

[Assam_Bhayya]

1 hour ago, manamthoupule said:

@Assam_Bhayya We need to file taxes in India if we have income more than 2.5 lakhs as NRI.

That you can file independent of this. But while reporting foreign income filing to IRS you don't have to make sure you've filed taxes in India or not. cuz, Indian FY is Apr-Mar and US FY is Jan-Dec.

Suppose if you are filing taxes in US in Feb by that time you don't file IT in India for the FY year ending on Mar-31 right.

So, filing IT to India IT dept is a different thing, not linked to US tax filing. All that is linked to US filing is how much you earned during US FY Jan-2023 to Dec-2023 in a foreign country and how much tax you might pay for that in that foreign country, all these calculations are done by a CPA. Go for this if you've child tax credits and dependent tax credits here in USA. 

India filing anyway you can do till Jun-July-2024 I guess.