Thank you very much for your reply. It was much helpful. However, when I was reading the income tax treaty between India and US on the IRS website - Article number 22, (please see the link below, page 49 for payments to research scholars)

http://www.irs.gov/pub/irs-trty/inditech.pdf


It is mentioned here that the tax is exempted for researcher if he is going to stay here for not more than 2 years. Tax will be exempted for the first two years and after that if oneself is still working, then he is liable to pay tax for the entire stay of his period. While I am here for a 3 year Project. Am I exempted for the first two years. Will I be required to pay the tax after 2 years for all the three years?? Or only from the third year? I am very confused about this. I would much appreciate your reply in this regard. Thank you.

Bufalo:

Yes, paying for taxes for all three years is a distinct possibility. I ran into a similar issue with a teacher in NY.

There are ways to get around this, of course. You may want to speak with a local tax professional with experience in this area of taxation.

Thanks Bufalo.. I had the same question... AtlantaExpress, I've been looking for a local expert on this specific issue but had no luck yet... AtlantaExpress, do you know anybody who can help us on this issue? Your prompt reply would be highly appreciated.. . Thanks, Jaivin

Where's "local"?