I wanted to find out if anyone had researched on what are the implications on having income in US while staying full-time in India.
I'm thinking of the situation where either me or my spouse are employed either full-time or for consulting work here in the US and hence are paid in US. But we are staying full-time in India and travelling frequently on work. We have GC and I'm planning to get reentry permit.
What are the tax implications ?
Can I use the time (spent outside the country) towards physical residency requirements (since one of us is still employed here) ?
Are there any other issues to be aware of ?
Appreciate the help.
tax and other implications on earning in US while staying in India
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kkassociate
- Posts: 173
- Joined: Mon Oct 05, 2009 4:45 pm
tax and other implications on earning in US while staying in India
Hi ppr1979,
A lot of things to tax care both from India and US tax point of view. Since you are staying in India and earning in USD, your USD income will be deemed to accrue and arise in India ,since you are utilising the resources from India and providing the services staying here in India. Section 9 of the Income tax Act talks in details about this. Since you are working as a consultant i.e. on 1099, you income if more than INR 15 Lacs when converted, you will be subject to maintain the books of accounts, get your accounts audited from Chartered Accountant and follow the rules for payment of advance tax as well.
We provide both USA and India tax filing services from Pune. You can send us an email with complete details on [email][email protected][/email] or visit us at www.kkassociate.com
Regards,
KKA
A lot of things to tax care both from India and US tax point of view. Since you are staying in India and earning in USD, your USD income will be deemed to accrue and arise in India ,since you are utilising the resources from India and providing the services staying here in India. Section 9 of the Income tax Act talks in details about this. Since you are working as a consultant i.e. on 1099, you income if more than INR 15 Lacs when converted, you will be subject to maintain the books of accounts, get your accounts audited from Chartered Accountant and follow the rules for payment of advance tax as well.
We provide both USA and India tax filing services from Pune. You can send us an email with complete details on [email][email protected][/email] or visit us at www.kkassociate.com
Regards,
KKA