Ask Experts Questions for FREE Help !
Ask
    igr001's Avatar
    igr001 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Sep 12, 2011, 05:00 PM
    US-India Double Taxation-Shareholder Dividends or Profit Distribution
    I am a US citizen, resident of US. I am a considering becoming a shareholder in a trading company registered in India. What is the best way for me to receive profit distributions or dividends? If I obtain a PAN number in India will I pay taxes in India or still have to pay taxes in the US and claim a foreign taxes paid credit against my Indian tax withholding?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Sep 13, 2011, 03:42 PM
    I cannot address the Indian tax implications, but as a U.S. citizen, then dividends earned in ANY compnay is subject to U.S. taxes.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Sep 15, 2011, 03:06 AM
    In India the receiver of dividends does not pay any income tax. It is tax free income. The company that distributes the dividends pays 15% dividend distribution tax.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

US India Double taxation treaty for C Corporation which is situated in India [ 2 Answers ]

We are VoIP based (Telecom) C Corporation in NY, USA. Our one branch office is situated in India. But the employees hired to work for this company are paid through our wholly indian based group company only. We do pay all the US federal and State Taxes. So kindly tel us if we are liable to any...

Double taxation in india. [ 1 Answers ]

HI, I am being transferred to India for 1 yr from Singapore and I will continue to get my salary in Singapore. I understand I will have to pay tax in India after 183 days. Are there any hidden rules that I need to worry about. I will also be travelling to Singapore for 5 days a month, 60 days a...

India-US Double Taxation [ 2 Answers ]

I am Presently working in US company till now (June 2009 ) and reached here in US from India on Oct 2008 . I did stay in India for more than 182 days. I had to resign from that company in India and joined here in US company as a new employee. My renumeration is given by the US company and my...

View more questions Search