r2i forum

Hi ,

I am planning to take an Independent Contractor role for a company based out of US . Wanted to get some help / inputs on the tax implication for this kind of scenario :

1. Does the income from this contractor role be considered as "Salaried Income" or "Other Income" ?

2. If it will be considered as "Other Income" , would it be possible to show the deductions which come under Chapter VI A , 80C and all that ?

For eg :

Investment in saving instruments like NSC, PPDF, ELSS ?
Housing Loan interest
HRA benefits
Health Insurance for self and dependants ?

3. What are the tax liability which would be coming with this role ?

4. Would the income be liable for taxation in US ? TDS in US .

5. What all deductions can be claimed for bringing down the tax outgo ?

Any help is highly appreciated .

Thanks and Regards,
Srinath

This is self employment. Look for self employment deductions in Indian income tax code.

You will receive a 1099 at the end of the year from the US company, that you can use for filing taxes. You may be able to claim foreign income credit or deduction on this amount. If you are an USC/GC you would need to pay in self employment tax on this income to the US IRS. There will not be TDS since you are not an employee.