Working for a us company

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archanai1981

Accountant

29 Points Posted on 16 March 2014

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?

Replies (3)

Manoj Mehta

Head Of Department (Accounts & Finance)

1479 Points Posted on 17 March 2014

Dear Archana in April and may you will be RNOR (resident but not ordinary resident) and in this case the foreign income earned will not get taxable as per DTAA( double taxation avoidance agreement between India and USA) . In f.y 14-15 there will be many benefits to you in terms of any foreign income earned. But income earned in India will be taxable as per normal provisions. Regards