Foreign Income Disclosure and calculation methodology

[Asked by Guest]

Hi

I had earned US Income in one of my past years. I had paid the following taxes there

1. Federal Tax

2. State Tax

3. Social Security Tax

4. Medicare Tax

However, I was a Resident Indian in that year as I had stayed in India for 60+ days and I had returned to India. But unknowingly I had filed as a NRI, which I was actually not.

Question 1. In the context of the black money law how can I pay the differential tax (if any)

Question 2. What is the calculation methodology for the same.

a) Which Income should I include , Gross Income or Net Income

b) Do I get credit for both Federal and State Taxes

c) How to account for Social Security and Medicare Taxes.

Please help.

AI Summary

Foreign income disclosure: resident taxpayers must report worldwide income and reconcile foreign tax paid to determine credit eligibility.
A resident who filed as a non-resident must identify taxable foreign income, compute Indian tax liability on that income, and reconcile foreign taxes paid to avoid double taxation. Determine whether to include gross or net income for Indian taxation and whether federal and state withholding taxes are creditable. Social security and medicare contributions require separate analysis because payroll taxes may not be creditable as income taxes; compute Indian tax, claim allowable foreign tax credits within statutory limits, and address disclosure obligations under anti-black money rules.