Anyone has an idea on how taxes work if you're working remotely for a foreign (say US) company. Is it like you are taxed both from the US and India? For those who are working in such companies, it will be great if you can shed some light here.
I don't know a lot more about this, but there is a double taxation avoidance agreement between India and other foreign countries. This is in place so you don't have to pay double taxes in 2 countries.
Ideally a certain amount of your salary will be withheld by US (withholding tax i think) as their tax. The remaining salary will be credited into your account as it is without any more deductions. Now, when you file ITR in India, you can show the withholding tax as your tax paid (Don't know the specifics) and be except from any other additional taxes.
Hey š CA here!
A couple of things to keep in mind:
If you are working as an employee, social security (PF) payments may be made by company in USA.
If you are working as a consultant, you will need to evaluate GST registration & return filing requirements in India.
Best, CA Sonu Jain
At the end you should only be taxed on India's side since they have a agreement with US. If you are taxed by US as well, your CA will have to claim refund while filing income tax
Iām not talking about companies like Meta, Google or companies that have their branch offices in India. Even Turing has registered India entity to pay employee salaries.
For example, take Miro. They have offices in Amsterdam but they do...
Are there any tax benifits/ loss while working for a remote company while staying in India?
I'm told that the pay would be a bank - wire transfer every month or it could be a payoneer.
Are there any specific questions should i ask to g...
My understanding of tax is as good as that of a middle schooler. The question is obvious, for someone who can't levy HRA, LTA or anything else, how do I pay less taxes?
All I can levy, I think is tax free investments up to 1.5lac.
