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I am working from India for a US company and as per my knowledge I am not liable to pay any tax to US govt.

My first question is can I have them deposit my pay check in US account without any deduction of taxes. I think I need to fill W8-BEN form for this. Please advise.

My second question is what kind of taxes I need to pay in India as I am working as a independent contractor ? DO i need to fill any paperwork and how these taxes will be calculated ?

Please advise.

Dheer
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user9887
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3 Answers3

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In India you would need to pay Income Tax as per the tax bracket. You would need to record your income similar to what Lawyers, Doctors do. Please refer to the related question Indian citizen working from India as freelancer for U.S.-based company. How to report the income & pay tax in India?

Community
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Dheer
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I am working from India for a US company and as per my knowledge I am not liable to pay any tax to US govt.

Says who? When the IRS comes knocking to you (or the company that pays you, more likely), what will you pull to show them? Verify with a licensed EA/CPA (licensed in the US, of course) if it is true, and based on what. Generally, income sourced in the US is taxed by the US first, before anyone else. It might be that you have to look into the US-India tax treaty for answer.

My first question is can I have them deposit my pay check in US account

Definitely

without any deduction of taxes. I think I need to fill W8-BEN form for this.

That depends on your status with the employer, and the answer you get from the licensed US tax professional regarding the taxation on the moneys. If indeed it is not to be taxed by the US - you have to provide W8-BEN or W8-ECI (your licensed US tax adviser will tell you exactly which of them you need), on which to specify your exemption claims and what code section they're based on. The employer will then withhold accordingly.

Your second question has been answered by Dheer, so I ignore it.

littleadv
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There is a tax treaty between US and India which allows you paying taxes in one of the countries. In case IRS comes knocking on your door, you can produce tax receipts from India. Please get it confirmed as this is not a legal advice. https://www.irs.gov/businesses/international-businesses/india-tax-treaty-documents

Abhay
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