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Adding Indian income to US income?
As the matter is important, I expect a correct answer from tax knowledge persons only.
if my tax status in US is Resident with my US income USD 100,000 per year and having taxable income in India, then please let me know the following.
INDIAN INCOME: If my Indian income, Income from “Rent on House property” say, USD 20,000 per year. On that the Indian Income Tax department allowed a deduction of 30% (6,000 rebate) on 20,000 towards repairs and other expenses. So my net income became 14,000 (20,000-6,000). Again there is a basic Standard Deduction of 2,500 for every Tax assessee per year. So finally the taxable income became 11,500. (20,000-6000-2500=11,500). On the net , 11,500 I have paid a tax of 2,300 in India.
Now, which amount I have to show as my Indian in my tax returns in USA. Please guide me.
1. To declare total Rental income 20,000 ignoring all deductions (6,000 & 2,500)
2. To declare 14,000 after utilizing 6,000 deduction (Ignoring Standard deduction 2,500)
3. To declare 11,500 after utilizing all the deductions (6,000 & 2,500)
Hope that I can claim the tax paid in India (2,300) in my US tax returns.
Thanks in advance.
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