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Double Taxation Avoidance between US and India

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Double Taxation Avoidance between US and India

Both the US and Indian govtsallow credit for taxes paid to other countries and there is also a treaty between the US and the India designed to reduce double taxation.

However, there are limitations imposed by both countries and because of differences in the two systems it is possible to suffer double taxation. Proper planning can reduce this exposure. Whilst the US and India have a Tax Treaty designed to reduce any double taxation and the US does give a credit for India taxes, you may require advice on how to best use those credits.

The US will give credit for foreign taxes paid, however, they will only give credit against income up to the amount of taxes you would pay for US tax purposes. The excess Foreign Tax Credits have restrictions for use in future periods. We can help you maximise the use of these excess credits.