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

    May 29, 2014, 10:38 AM
    Query regarding India US tax treaty
    Hi

    I arrived in the US on August 20, 2012 and joined as a post-doc on a J1 visa starting September 1, 2012. According to the India-US tax treaty, I am exempted from tax for two years, but if I stay longer, then I need to pay taxes for the entire two years.

    My work contract in the US is until August 31, 2014 after which I plan to move out. My confusion is because of the fact that it will be less than 2 years since I started working, but more than 2 years since I arrived in the US. Will I need to pay taxes for the entire two years or not?

    Also, what will this situation be if I leave the US before August 20, 2014 but still get the salary until the end of August in exchange of working from home in India until the end of August?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 29, 2014, 10:53 AM
    Assuming the university agrees with your interpretation (many universities consider J-1 post-docs NOT to be interns, but rather students), you are fine with the 2-year tax exemption, since you probably did not get your first paycheck until after 1 Sep 212.
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!

Reduced federal withholding tax based on the India US Tax treaty [ 3 Answers ]

I am a citizen and resident of India. I am to receive an amount as beneficiary on an insurance policy from an aunt in the us, who was a US citizen and has passed away. Can I claim reduced federal withholding tax based on the India US Tax treaty? If so under which Article of the treaty? Thanking...

Tax and penalty exemption while withdrawing 401k through India-US tax treaty [ 11 Answers ]

As context, we resided in the United States from 2000 to 2009. Currently, we are Indian residents and Indian citizens (U.S. non-resident aliens). Through 4-5 years of employment in the US, we have a 401(k) account held in the U.S. (earned during years of employment and residency within the U.S.)....

Payment of tax in India and USA by green card holder/Double tax Treaty. [ 1 Answers ]

My daughter is a USA citizen. I can get a Green card as Parent (aged 79 yrs). I will not have any USA income. Will have Indian income (interest etc. Taxable in India ) How will this affect USA tax requirements. Do I have to pay tax on my Indian income in USA? Please reply. NARAIN

US-India Tax treaty for students from India [ 13 Answers ]

I found out that for Students from India studying in USA under US-India Tax treaty , I can claim $5450 standard exemption under Article 21(2) . IS this true? Thaks in advance!

Query on India-U.S. Tax treaty [ 4 Answers ]

Hello, I have been in the U.S. since May 2006 with a J-2 visa, and my husband is a research scholar who has been in the U.S. since January 2006 with a J-1 visa. He is filling out 1040NR (in which one personal exemption and one spouse exemption allowed to J1 from India can be claimed), 8843, and...

View more questions Search