India Income Tax

[WhiteOleander]

T/P is a US citizen. He is self employeed and will be working in India. He says he was told he will have to pay taxes for India. Any ideas on how to get information on income taxes in India? My google search has given me some sites. Does anyone have info on the basics of how their system works?
Thanks

[JohnH]

This site might be a source of some anecdotal info and possibly provide links to other more authoritative stuff regarding taxes.

You might also want to pass the link along to your client if he doesn't already know about it. I've been to India twice this year and am returning Dec 26 (not on business), and I find lots of useful info here. There's also some first-class drivel on the site, but overall I enjoy reading many posts and have made some helpful contacts through it.

http://www.indiamike.com/

[WhiteOleander]

Thanks John,
I will certainly look it over. I'm wanting to give some guidance to my client.

[Koss]

Foreign Tax

India has a very favorable tax treaty with the US. The treaty is fairly complicated, and the treatment of income hinges heavily on the type of work, the length of the stay, the type of visa, and sometimes even who the employer is. So you'll definitely want to look into that. One place to start is IRS Publication 901.

Your client may also be eligible for the foreign earned income exclusion, the foreign housing exclusion, and/or the foreign tax credit.

But whatever you do, don't call the US Treasury Department for advice. You might end up talking to Tim Geithner, and he apparently doesn't understand how foreign income of US citizens is taxed.


[LMAO]

BMK