Question on Indian Taxation Rules

Shan09 · Jan 13th, 2009, 14:59

I was working in India till 8th July 07 in India in an Indian company. I left my job and moved to the USA on 25th July 2007 and joined an American company. Since then I have been working here.

Could anybody pls tell me whether my income in USA is taxable in India for 2007-08?

KABAARY · Jan 14th, 2009, 23:38

Insufficient information...

Assuming you are Indian, have a look at Article 16 of the Indo-US DTAA extracted below :

Article 16 - Dependent personal services - 1. Subject to the provisions of Articles 17 (Directors Fees), 18 (Income Earned by Entertainers and Athletes), 19 (Remuneration and Pensions in respect of Government Service), 20 (Private Pensions, Annuities, Alimony and Child Support), 21 (Payments received by Students and Apprentices) and 22 (Payments received by Professors, Teachers and Research Scholars), salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State, if :

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant taxable year ;

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and

(c) the remuneration is not borne by a permanent establishment or a fixed base or a trade or business which the employer has in the other State.

Jan 13th, 2009, 14:59	#1
Shan09 Member Join Date: Jan 2009 Location: USA Posts: 1	Question on Indian Taxation Rules I was working in India till 8th July 07 in India in an Indian company. I left my job and moved to the USA on 25th July 2007 and joined an American company. Since then I have been working here. Could anybody pls tell me whether my income in USA is taxable in India for 2007-08?

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Jan 14th, 2009, 23:38	#2
KABAARY Maha Guru Member Join Date: Dec 2007 Location: INDIA Posts: 1,262	Insufficient information... Assuming you are Indian, have a look at Article 16 of the Indo-US DTAA extracted below : Article 16 - Dependent personal services - 1. Subject to the provisions of Articles 17 (Directors Fees), 18 (Income Earned by Entertainers and Athletes), 19 (Remuneration and Pensions in respect of Government Service), 20 (Private Pensions, Annuities, Alimony and Child Support), 21 (Payments received by Students and Apprentices) and 22 (Payments received by Professors, Teachers and Research Scholars), salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State, if : (a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the relevant taxable year ; (b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State ; and (c) the remuneration is not borne by a permanent establishment or a fixed base or a trade or business which the employer has in the other State.