54. Tax Treaty between India and

United States of America

Question: Dear sir thanks so much to gave me great information last e:mail. i still have one confusion in your answer. i have usa citizen and oci card. i have hotel business in usa. i want sell after five year. i pay the tax under usa government. if i move to India and open my business in India. then i have to pay the tax to Indian government. it is any problem to pay the tax to different government. thanks Kiran Sharma Answer: If you settle in India you will pay taxes in India. United States and India have a tax treaty so that their citizens avoid double taxation. When US citizens pay income tax by filling tax returns in foreign countries with whom the United States has tax treaties, they are given a foreign tax credit when filling their US tax return so as to avoid double taxation. Where you earn income and the amount of time you spend in India are two factors that come into play. Check with an accountant for professional tax advice. For detailed information on the tax treaty between India and the United States of America CLICK HERE