{"id":33424,"date":"2024-02-21T13:40:51","date_gmt":"2024-02-21T18:40:51","guid":{"rendered":"https:\/\/www.indianeagle.com\/travelbeats\/?p=33424"},"modified":"2024-02-21T15:08:22","modified_gmt":"2024-02-21T20:08:22","slug":"usa-india-income-tax-treaty-for-nris","status":"publish","type":"post","link":"https:\/\/www.indianeagle.com\/travelbeats\/usa-india-income-tax-treaty-for-nris\/","title":{"rendered":"What is India-US Tax Treaty? Know How It Benefits NRIs with Taxation in India and USA"},"content":{"rendered":"
The USA is home to nearly 1.28 million NRIs and 3.18 million PIOs. Most of them earn passive income in the form of interest on bank deposits\/accounts, dividends on investments, or from business ventures in India<\/strong>. And if this overall income exceeds 2.5 lakhs (tax-free income), filing of tax return becomes mandatory. Are the income tax rules, rates and exemptions for NRIs different from Indian residents? Broadly speaking, yes.<\/p>\n Although all Indian citizens, residents or non-residents, are subject to the Income Tax Act of India, their residency status plays a key role in determining their tax liability and the extent of taxation. Firstly, NRIs are taxed only on the income earned\/deemed to be earned or accrued from sources in India. They aren\u2019t obligated to pay tax on their overseas earnings or declare foreign assets.<\/p><\/blockquote>\n Secondly, the India-US tax treaty provides relief from double taxation for NRIs<\/strong> in cases where both nations hold a legal right to tax certain forms of income. As an NRI working and living in USA, you need to know when to leverage the US-India tax treaty to cut down the tax burden. Here\u2019s your guide to key aspects of NRI taxation in India and US-India tax agreement.<\/p>\n