Category: Tax
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India-USA DTAA – An Overview
Though the tax residency rules of India & USA substantially differs from that of India, there is still a chance of resulting in certain incomes of that person taxable in both countries, or a case of dual residency whereby in the same year, the person qualifies as a tax resident of both USA and India.…
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USA Tax Compliances & Implications for surrender of US Citizenship/Green Card
In this post, I am discussing the USA Tax Implications & Compliances for surrender of US Citizenship/Green Card. This will be helpful for those Indians who return from USA and want to settle down permanently in India. Note – Content in this post contains an extract of main IRS tax guidance on this topic. For…
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Tax Guide for freelancers working remotely for US companies from India
After the pandemic lot of people in India took up freelance work for US companies in India, especially on freelance marketplaces like Upwork, Fiverr, Freelancer & others. In this post, I am discussing the tax obligations that the freelances should know to comply properly while working remotely for US companies in India & avoid heavy…
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How to obtain a Tax Residency Certificate in USA
Lot of times US based NRIs who have investments in India need to claim the benefits of Indi -USA DTAA in the form of reduced/nil rate of tax deducted at source by payers on their incomes in India (e.g. NRO bank deposits) or need to claim the credit of tax paid in USA in their…
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Form 15CA/CB compliances by NRI: Procedure and Issues
Form 15CA/CB compliances by NRI: Procedure and Issues Assume you are an NRI based out USA and you’ve sold property in India and after deduction of applicable TDS by the buyer, the proceeds are in your NRO account. Now, you want to transfer the amount back in USA. As per Indian Income Tax Act, any…
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How to calculate Residential Status for Tax Purposes in India
A person’s residential status as per the tax law of a particular jurisdiction has a huge impact on the taxability of income of a person in that jurisdiction. Many a times, I see past tax returns of my NRI clients where incorrect residential status is mentioned and a result, they get a tax notice as…
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IRS Foreign Bank Account Reporting (FBAR) by US-based NRI
In this earlier post, we have discussed about FATCA and CRS and why US NRI need not fear these new developments as long they are assessing their tax residency properly, offering full income in their tax returns and filing proper reports with the IRS. Speaking of reports, there are two main reports that a US…
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Should I retain my US citizenship/ Green Card on Return to India?
For families who have stayed back in the USA for a considerable time and obtained a US citizenship (USC) or a green card (GC), and now returning back to India for a better career opportunity, or taking care of parents or with an intent to retire back in India, a top of the mind question…
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How to calculate Residential Status for tax purposes in USA
Given the increase in global mobility of employees, tax consultants come across clients who are citizen /resident of another country or even multiple countries. Situation can become complicated when multiple countries have overlapping tax residency rules resulting in double taxation on the same income. A prime example of such cases is a country like USA…