kavzy
Jul 29, 2008, 03:51 PM
I had few questions regarding double taxation.
- Since I am planning to come back to India somewhere around (last week) Nov 08 (mostly 30th Nov), I want to know if my NRI status will still hold good. Here are the required details:
1. In December, I would have completed 8 months in the US as per Indian financial calendar 08-09 (and thus 4 months in India)
2. I came in the US on 15th Dec 2005, thus will complete 2 years and 351 days on 1st Dec 08 ( thus I have stayed in India for more than a year in past 4 years)
3. Before 15th Dec 2005, I have been staying in India only
4. In 2006, I was in India for vacation from 14th Oct 06 to 12 th Nov 06 (a week was unpaid)
5. In 2007, I was in India for vacation from 23 rd Nov - 15 th Dec 07 (paid vacation)
- If I lose my NRI status in India in Dec 08 or if I become a victim of double taxation, do they tax on my entire "8 months" income that I have earned in the US or just the
[Gross US salary - withheld tax amount in the US ]? Is the tax returns I get in the US for the year 2008 also taxed?
- I get US salary and NOT an allowance. A part of my salary (around $700) is an India component (some performance pay) which they convert into dollars and pay us here directly. We don't have this shown for Indian income tax, but is taxed here. Does this affect double taxation by any chance?
- Last but a saver question for me -> what type of investments in India will be the best for me in order to reduce these taxes as much as possible? Up to what amount can I invest for this?
I heard a friend of mine had to pay Rs. 70K last year because of double taxation when he returned in December 07. Other friend who returned in August had to pay Rs. 2 lakhs on the US income itself ! One of my friends who returned in Feb, did not have to pay any tax might be because she was in India for less than 60 days in that financial year.
Please guide me.
- Since I am planning to come back to India somewhere around (last week) Nov 08 (mostly 30th Nov), I want to know if my NRI status will still hold good. Here are the required details:
1. In December, I would have completed 8 months in the US as per Indian financial calendar 08-09 (and thus 4 months in India)
2. I came in the US on 15th Dec 2005, thus will complete 2 years and 351 days on 1st Dec 08 ( thus I have stayed in India for more than a year in past 4 years)
3. Before 15th Dec 2005, I have been staying in India only
4. In 2006, I was in India for vacation from 14th Oct 06 to 12 th Nov 06 (a week was unpaid)
5. In 2007, I was in India for vacation from 23 rd Nov - 15 th Dec 07 (paid vacation)
- If I lose my NRI status in India in Dec 08 or if I become a victim of double taxation, do they tax on my entire "8 months" income that I have earned in the US or just the
[Gross US salary - withheld tax amount in the US ]? Is the tax returns I get in the US for the year 2008 also taxed?
- I get US salary and NOT an allowance. A part of my salary (around $700) is an India component (some performance pay) which they convert into dollars and pay us here directly. We don't have this shown for Indian income tax, but is taxed here. Does this affect double taxation by any chance?
- Last but a saver question for me -> what type of investments in India will be the best for me in order to reduce these taxes as much as possible? Up to what amount can I invest for this?
I heard a friend of mine had to pay Rs. 70K last year because of double taxation when he returned in December 07. Other friend who returned in August had to pay Rs. 2 lakhs on the US income itself ! One of my friends who returned in Feb, did not have to pay any tax might be because she was in India for less than 60 days in that financial year.
Please guide me.