U.S. Residents: Reporting Global Income and Using the DTAA to Avoid Double Taxation on Indian Earnings
As a U.S. resident, you must pay tax on your global income, including income earned in India. However, due to the Double Taxation Avoidance Agreement (DTAA) between India and USA, you can avoid being taxed twice on the same income by claiming a foreign tax credit for NRIs in USA for taxes paid in India.
Also Read: What is FBAR Filing for US NRI? What needs to be kept in mind?