364. Must US Citizen notify IRS of income when Indian taxes have been paid
Q: I am a US citizen with an OCI card. If I make long-term capital gains from the sale of an immovable property in India, the capital gain amount being non-repatriable from India, and if I pay 20%+ tax on that gain in India, am I liable for any taxation in the US (The Indian capital gains tax in India is higher than the 15% long-term capital gain tax in the US)? Should this gain need to be reported to the Treasury or IRS though the gain is non-repatriable and taxes already paid in India. Thanks in advance for your response. Raghupathi A. As a US Citizen, you are required to declare ALL worldwide income to the IRS. Even if the taxes on such income, has already been paid in India. Whether the income earned abroad is repatriated or not, does not matter. New regulations have already been announced for US citizens regarding foreign income and bank accounts. These are discussed in my book THE NRI GUIDE 2012/2013.
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364. Must US Citizen notify IRS
of income when Indian taxes
have been paid
Q: I am a US citizen with an OCI card. If I make long- term capital gains from the sale of an immovable property in India, the capital gain amount being non- repatriable from India, and if I pay 20%+ tax on that gain in India, am I liable for any taxation in the US (The Indian capital gains tax in India is higher than the 15% long-term capital gain tax in the US)? Should this gain need to be reported to the Treasury or IRS though the gain is non-repatriable and taxes already paid in India. Thanks in advance for your response. Raghupathi A. As a US Citizen, you are required to declare ALL worldwide income to the IRS. Even if the taxes on such income, has already been paid in India. Whether the income earned abroad is repatriated or not, does not matter. New regulations have already been announced for US citizens regarding foreign income and bank accounts. These are discussed in my book THE NRI GUIDE 2012/2013.
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