NRI - OCI - PIO Guide & Information

143. Nri income tax issue - Double taxation treaty India - Russia Q: Dear Sir or Ma'am, I am Non-Resident India living in Russia. Since Feb. 2007 I am working officially in U S Consulate-General in St. Petersburg, Russia and because of bilateral agreement between India- Russia on Income tax, my Income tax is not deducted in Russia, would be very happy to know whether I have to file my Income-tax returns in India. Now accounting firm is changed in our Embassy and new firm is saying that if I am not paying taxes in India then I have to pay in Russia, even back dated from 2007. Kindly advise the better course of action for me. Thank you, Sincerely, Babu Hebbli A. Tax treaties are signed so that people of either country are not penalized by double taxation. It does not exempt them from paying taxes at all. The source of income and residence are two factors that come into play in such cases. Normally such income may be taxable in the source country if stay exceeds 183 days in a financial year. A link to the Indian Income tax dept on India's Double Tax Avoidance Agreements is provided HERE.