Taxability on Income of US resident
This query is : Resolved
05 August 2020
Need advice on taxation in India.
I am a US citizen and resident of US, working as Consultant in Indian company from USA. What will be the tax impact in India and US on my consultancy income paid by Indian Company and will company deduct TDS on my income.
As per article published in 2012, the taxability was as under:
“If you are a resident of the US but earned a part of your salary in India, then, as per the above definition, you would have to pay tax on your India income in the US. Is the payer in India subject to deduct tax at source in India? Not really. Article 16 of the DTAA states that salaries earned by a person who resides and works in country A (country A in this case being the US), shall be taxed ‘only’ in the country of residence, that is, the US. So if you are a resident in the US and are working you will pay tax on your India salary in the US.”
(https://economictimes.indiatimes.com/nri/nri-tax/us-tax-filing-help-for-nris-on-how-global-income-is-taxed/articleshow/11887751.cms)
Thanks
I am a US citizen and resident of US, working as Consultant in Indian company from USA. What will be the tax impact in India and US on my consultancy income paid by Indian Company and will company deduct TDS on my income.
As per article published in 2012, the taxability was as under:
“If you are a resident of the US but earned a part of your salary in India, then, as per the above definition, you would have to pay tax on your India income in the US. Is the payer in India subject to deduct tax at source in India? Not really. Article 16 of the DTAA states that salaries earned by a person who resides and works in country A (country A in this case being the US), shall be taxed ‘only’ in the country of residence, that is, the US. So if you are a resident in the US and are working you will pay tax on your India salary in the US.”
(https://economictimes.indiatimes.com/nri/nri-tax/us-tax-filing-help-for-nris-on-how-global-income-is-taxed/articleshow/11887751.cms)
Thanks
06 August 2020
Such consultancy income is taxable in US but 10% TDS will be deducted in India under fees for technical service.
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