Whether income in USA is taxable in India

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This query is : Resolved

Shan09 (Querist)

13 January 2009 I was working in India till 8th July 07 in India in an Indian company. I left my job and moved to the USA on 25th July 2007 and joined an American company. Since then I have been working here.

Could anybody pls tell me whether my income in USA is taxable in India for 2007-08?

CA Chaitanya

CA Chaitanya (Expert)

13 January 2009 From the information given, it seems that your residential status under the Income tax act is a resident and ordinarily resident.

CA Chaitanya

CA Chaitanya (Expert)

13 January 2009 In such a case, your Indian income and your foreign income is taxable in India.

Shan09

Shan09 (Querist)

15 January 2009 Thanks for your reply. I am a novice and I looked upon some info and came up with the following. Does this have any relevance / bearing on my case?

I would like to add some more info here......
I am a citizen of India and have not been outside India for 180 days or more at any time before I left India on 25th July 07. Since then I have been in the US. Also my employer was based out of the US and had no branches in India.
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Article 16 of the Indo-US DTAA :

Article 16 - Dependent personal services - 1. Subject to the provisions of Articles 17 (Directors Fees), 18 (Income Earned by Entertainers and Athletes), 19 (Remuneration and Pensions in respect of Government Service), 20 (Private Pensions, Annuities, Alimony and Child Support), 21 (Payments received by Students and Apprentices) and 22 (Payments received by Professors, Teachers and Research Scholars), salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State, if :

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant taxable year ;

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and

(c) the remuneration is not borne by a permanent establishment or a fixed base or a trade or business which the employer has in the other State.
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Any replies would be truly welcome.