How to Claim US Tax Credits in India – in simple steps

Paying taxes in the US and India? Avoid double taxation by claiming Foreign Tax Credit (FTC) in India. Here’s how:

1. Check Eligibility – If you’ve paid US taxes on income also taxed in India, you can claim FTC under Section 90/91 of the Income Tax Act.
2. Keep Proof – Save US tax documents (Form 1040, W-2, etc.) as proof of taxes paid abroad.
3. File ITR in India – Report foreign income in your Indian tax return and claim FTC by filling Schedule FSI.
4. Credit Limit – The credit cannot exceed the Indian tax payable on that income.
5. DTAA Benefit – India-US tax treaty helps reduce tax burdens—check which income types qualify.
6. Consult an Expert – Tax rules can be tricky, so a CA can help maximize savings.

By following these steps, you can avoid paying tax twice on the same income. Save money, stay compliant!