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Planning a move to US? Check these Tax pointers/tips
If you are contemplating to move to the US on work or for personal reasons, please remember US taxes its citizens and residents on worldwide income. Also, US views pooled foreign investments negatively and treats them as passive investment companies (PFIC) and subject them punitively from a tax perspective. So, if you are a non-US…
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India-USA DTAA – An Overview
Though the tax residency rules of India & USA substantially differs from that of India, there is still a chance of resulting in certain incomes of that person taxable in both countries, or a case of dual residency whereby in the same year, the person qualifies as a tax resident of both USA and India.…
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USA Tax Compliances & Implications for surrender of US Citizenship/Green Card
In this post, I am discussing the USA Tax Implications & Compliances for surrender of US Citizenship/Green Card. This will be helpful for those Indians who return from USA and want to settle down permanently in India. Note – Content in this post contains an extract of main IRS tax guidance on this topic. For…
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Tax Guide for freelancers working remotely for US companies from India
After the pandemic lot of people in India took up freelance work for US companies in India, especially on freelance marketplaces like Upwork, Fiverr, Freelancer & others. In this post, I am discussing the tax obligations that the freelances should know to comply properly while working remotely for US companies in India & avoid heavy…
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How to obtain a Tax Residency Certificate in USA
Lot of times US based NRIs who have investments in India need to claim the benefits of Indi -USA DTAA in the form of reduced/nil rate of tax deducted at source by payers on their incomes in India (e.g. NRO bank deposits) or need to claim the credit of tax paid in USA in their…
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Understanding Traditional and Roth IRA in USA
Traditional & Roth IRA are amongst the most popular self-funded investment options in USA after the 401k which is an employer provided plan. I have already written earlier about 401K (Understanding 401K Plans) and today, I am sharing my knowledge and learning about broad features of Traditional and Roth IRA. Features of Traditional IRA Contribution…
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Form 15CA/CB compliances by NRI: Procedure and Issues
Form 15CA/CB compliances by NRI: Procedure and Issues Assume you are an NRI based out USA and you’ve sold property in India and after deduction of applicable TDS by the buyer, the proceeds are in your NRO account. Now, you want to transfer the amount back in USA. As per Indian Income Tax Act, any…
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How NRI can save tax on interest income from fixed deposits in India
Recently, I received a query from Ramesh (name changed), an Indian citizen shortly moving to UK for a long term assignment. He has till now invested some good amount fixed deposits in India from which he is earning regular interest income of say Rs. 5 lacs every year. Now, his query was First steps while…
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Som Datt [ITAT]: Onus is on assessee to prove that distribution from an offshore trust is not taxable in India
Many HNIs create offshore discretionary private trusts with an aim to achieve succession planning goals and escape tax liability in India. However, there is a lack of clarity on taxability of distributions received from these trusts. In this light, there has been an interesting decision given by ITAT Kolkata bench in case of Som Datt…
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How NRIs can manage currency risk in their investment portfolio
In the past few weeks, we’ve seen China devaluing its currency, US Federal Reserve not increasing its rates and a steady depreciation of INR against USD. As a fall out and knee jerk reaction to such events, there has been a sharp increase in NRI remittances to India to benefit from a weaker rupee (news…