Intermediate
Case Study: An NRI's Tax Planning Using DTAA Between India and the US
An NRI working in the US still earns in India: FD interest, dividends, rent, capital gains. Both countries want a share, and the India-US treaty decides who gets what. This case study follows one engineer in Seattle through a full year, income stream by income stream, from Indian TDS to the US foreign tax credit, and shows the restructuring that cut her combined tax and compliance risk.
India-US DTAAResidential Status and Tie-BreakerSection 195 TDS and Treaty RatesForeign Tax Credit (Form 1116)PFIC and FBAR/FATCATRC and Form 10FRNOR Planning
MODULES
4
DURATION
~2.5 hrs
TRACK
Tax & Wealth Planning
What You'll Master
How to establish residency in both India and the US, and when the treaty tie-breaker applies
How each Indian income stream (interest, dividends, rent, capital gains) is taxed under the India-US treaty
How Indian tax paid becomes a credit on the US return, and where credits get lost
Why Indian mutual funds are a PFIC problem for US taxpayers and what to do about it
Which documents unlock treaty rates in India and how to recover excess TDS
How to plan a return to India using the RNOR window
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates
Curriculum Breakdown
Chapter 1: Opening the Case File
3 LessonsChapter 2: The Indian Side, Income by Income
4 Lessons▶
NRO Fixed Deposit Interest: Section 195 TDS vs the Treaty Rate10 min read
▶
Dividends From Indian Shares Held Through an NRI Demat Account9 min read
▶
Rental Income From the Pune Flat: Who Taxes It First10 min read
▶
Selling Listed Shares and Equity Mutual Funds: Why the Treaty Gives No Shelter11 min read
Chapter 3: The US Side and the Foreign Tax Credit
4 Lessons▶
Reporting Indian Income on the US Return: Form 1116 and the Foreign Tax Credit12 min read
▶
The PFIC Trap: Why Indian Mutual Funds Hurt a US Taxpayer11 min read
▶
FBAR and FATCA: Reporting NRE, NRO and Demat Accounts to the IRS9 min read
▶
Timing Mismatches: The April to March Year vs the US Calendar Year10 min read
Chapter 4: The Plan and What It Saved
4 Lessons▶
Paperwork That Unlocks the Treaty: TRC, Form 10F, PAN and Lower TDS Certificates10 min read
▶
Restructuring Ananya's Indian Portfolio: What to Keep, Sell and Move11 min read
▶
Before vs After: The Full Two-Country Tax Computation12 min read
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Planning the Return to India: The RNOR Window and Pre-Return Moves10 min read