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Finance & Taxes

DTAA Relief & Foreign Tax Credit Calculator (India–US)

Taxed on the same income in both India and the US? Estimate your Foreign Tax Credit, how much double taxation the DTAA avoids, and any US tax still due or India tax to carry over.

Your details

Your DTAA / Foreign Tax Credit relief

Indicative Foreign Tax Credit (Form 1116)

$2,000

Credited against your US tax on this income.

Double taxation avoided

$2,000

The tax you'd otherwise have paid twice on the same income.

US tax on this income (credit ceiling)$2,400
India tax paid$2,000
Allowable credit$2,000
US tax still due after credit$400
Excess India tax to carry over$0
With vs without the credit
Total tax WITHOUT FTC (India + US)$4,400
Total tax WITH FTC$2,400
Effective rate without credit44.0%
Effective rate with credit24.0%
You still owe the IRS the difference. Because your US rate is higher than the India tax on this income, the credit covers $2,000 and $400 of US tax remains due on top of what you paid India — but you are never taxed twice on the same dollar.
How to claim it: In the US, claim the credit on IRS Form 1116 (Foreign Tax Credit), filed with your 1040. If you also need India to grant treaty relief on US-taxed income, India requires Form 67 filed before your Indian return. See our DTAA & double-taxation guide.

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Simplified estimate. The real Form 1116 limitation prorates the credit across your total taxable income and separates income into baskets; treaty rates, the timing of when each country taxes, and state taxes (not creditable) can change your result. Confirm with a qualified cross-border tax professional.

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Educational estimate only. This calculator provides general estimates and is not financial, tax, legal, or immigration advice. Rules change and vary by state, visa status, and individual circumstance. Consult a qualified professional before acting. See our full disclaimer.