DTAA - Salary taxed in India & also In US

This is Rajesh. Couldn't get any expert advice anywhere so reaching you in despairity.

I work for an Indian company & had stayed in US from 25 April 2008 – 05 Dec 2009 on deputation.I came back to India on 07 Dec. 2009.

My Company used to give me salary in US in two parts. Part I is my Indian Salary which gets converted to dollars & remitted to my US bank account. Part II is US allowance in dollars credited to my US bank account. US govt did TDS on both of these components .

My company had done TDS on my entire Indian Salary. As my US salary has two components Indian salary & US allowance both . I understand that I have paid TAX on my indian salary in both the coutries (US & India). From where I can get double Taxation Benefit?


Your Indian Salary has been taxed in both the countries, b’coz your Indian salary was paid from India and was taxed In US also b'coz u have received there and ware employed there.

All global income is subject to tax in the country in which u r resident. Here u r resident of US and Non-resident Indian.

Since you are NR Indian, your income earned in India will be taxable in India and the income earned & received in US will NOT be subject to Indian TAX.

As per article 16 of the DTAA agreement only if the individual is in India for 182 days or more anytime during the previous year (2008-2009) and he exercises his employment in India during that relevant previous year his salary will be taxable as per the provisions of Indian tax, otherwise will not be taxable in India.

YOU can claim refund from Indian tax authorities of the tax paid in India as the salary so figuring in your form 16 is not taxable in India.

File Your Income Tax Return In India for Claming DTAA benefit.

Relevan studies

Sec. 90 & 91 of the Income of the Income tax Act.

Advance ruling on the above matter

Analysis on the above advance ruling (must read)

Double taxtion Avoidance Agreement with US govt. (read artice 16)


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