Can any body help me please, my friend is working from India, but his salary is being paid by an US Incoporated conpan, company got signed a contract and employee is working from India, monthly salary will be paid in US, No taxes were deducted as off now in US, eighte he is not paying any taxes in India, can any body guide how this income will be covered under taxes for India Gov and US IRS.
regards
Venkat
Sir, I am guessing that your friend as is staying and working in India has satisfied the conditions of being a Resident.....taking him to be a RNOR, his income as is not taxed in US but is earned by him as a Resident will be taxable here. One cannot avoid tax obligation merely by changing the origin of Income, though if he is a non-resident, he would not be liable for taxes here.
If he pays the tax to US IRS, then he will not be required to pay tax here (no double taxation, Chapter XII), Also it wouldn't matter if he brings the income to India or not, things wouldn't change by that.
agreee with above
CCI
Pro
CAclubindia
