Usa form w8 ben. is it taxable in india ?

1203 views 1 replies

I am an IT consultant working for an Indian company. I was deputed to USA during Sep-Dec 2011 for some project realted work. As my stay in USA was less than 183 days during the USA financial year 2011, I opted to submit W8 Ben to my employer. Due to which my employer did not deducted the STATE ans FEDERAL tax on my USA income for 4 months.
I was happy to decalre this as an additional income in India for FY 2011-12 as had sufficient investments in India to claim the tax benefits on this huge income ($ income convrted ton INR).

But while filing my returns in USA for FY 2011, the CA's there are asking me to pay 10% tax (applicable to my income slab in USA). Also after paying this 10% tax in USA, they say I will have to pay the difference in India i.e. 30%(Indian slab) - 10% (USA slab) while filing the returns in India for FY 2011-12. This is confusnig me.

If I have to pay double tax, then what is the use of USA-India treaty ? why the W8 Ben was introduced ? Can anyone of you explain what is right and what is wrong ? Why I can't I simply pay the whole tax in India ? What is I don't pay it in USA ?

Replies (1)

Can anyone answer this ?


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
Featured 15 June 2026
Senior Auditor

N. Dhawan & Co

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details