Hi, I have just signed up for tax treaty exemption between India- USA. My question is at the end of two years I am planning to get my Visa changed from J1- researcher to J1- clinical residency. For which I have to forgo this work and go to India for VISA change and come back. So now that I am under the treaty but changing visa status will I be FINED RETRO ACTIVELY for staying more than 2 years, PLEASE ADVICE , I truly appreciate your response

You are NOT going to be retroactively fined, you will be retroactively TAXED!

To avoid that tax, you must return to India, re-establish residency in India (which usually takes ONE year), then return under the second J-1 visa.

Thank you so much AtlantaTaxExpert! I truly appreciate your time to answer my question. I think I will forgo the tax treaty benefit.

Glad to help!