Hello,
I am an Indian citizen living in the US since March 2007. I am currently working for a US company since May 2010. I plan to move to India for good by end of March. My current US company wants me to work remotely from India temporarily as a part time contractor for couple of months starting April 1st - May end till they find a replacement. I will be paid hourly. They will deposit the money directly to my Indian bank account. I need to know what would be the implication for my taxes for those two months. They will be withholding taxes till March end while I am still an employee and I would file the taxes in the US till that period. I believe for the two months ( April, May) that I work as a contractor from India , my income would be taxable only in India. Is that right? Being a foreign company they will not be deducting any taxes from my income. So I should be paying advance tax for that amount? And would that income be chargeable under " Income from business/profession"? Is there any invoice or declaration I need to submit to my company?
CAclubindia
