Indian TAX for Expats...?

[Albotross]

Whats the deal paying taxes in India...if i live here in US. Can someone explain this to me..THANK YOU GUYS.

[Nevrekar]

The Indian company should be paying your Indian Taxes. Your paycheck should be "net" and you should not have tom pay anything. You still file US taxes and get the foreign earnings exclusion of $85,000.

[AIEXPATS]

The Foreigners Registration Office (FRRO) in Mumbai will require everyone (Expats) who does NOT have a Tax Certifcate from their Employer to pay Indian Tax which is 35%. Then comes a question of the double tax treaty/ies. So the Indian Income Tax Department will check your Gross salary. Look at your home countries net tax paid by you. Deduct this from the 35% from your Gross and compare to what you should have paid in India. The balance you'll have to pay them (India). So a REAL bad deal. All AIr India / Express pilots are very, very concerned by this and we are extremely worried the Tax Man will be chasing us down very soon.

[Albotross]

Why are we paying double taxes? I pay my taxes here in the states...do i have to pay them over there?

Example: say making 13,500 over there...they are saying after taxes..9,600..how is that.

Paying double taxes here and in India doesn't make sence....any ideas.

[blrsea]

I am not related to aviation field in any way, but I do know that India and USA have a double taxation avoidance treaty. India has similar treaties with other countries. Check out the list here http://incometaxdelhi.nic.in/taxsys/agree.htm

Click on the country name to view the treaty, and there are lots of western countries with which India has the treaty.

[152wiseguy]

Thanks blrsea, for some real factual info instead of speculation. :ok:

[bear11]

Let's put it this way, given there are some Indian airlines who don't, some who say they do and don't, and some who say they do and do it correctly: The legit ones are paying you in rupees into an Indian expat bank account at the dollar rate of the day, and giving payslips including taxes. And the country you pay your own taxes in has to have a dual-taxation agreement with India. That's the bonus in theory - you show the IRS your Indian tax cert, and use it to offset against your US taxes, although I don't know of anyone personally who has done this so far given it hasn't been done this way for long.

If it's any other way (especially being paid Dollars offshore), all bets are off, and any of the usual bullsh1t you hear is worth zip. Some people are discovering the painful truth when their work visa renewal comes up after 12 months and they are refused, as they must prove they paid their tax. That's the total experience of several guys I know in various airlines there in the past 2 years.

[Albotross]

Great information Bear11. Thank you buddy.

[flightknight]

Blrsea and Bear11 have provided good information on this topic. The other suggestion would be : Contact a Chartered Accountant (familiar with expat IT), in Mumbai/Delhi. Avoid visiting the local IT office on your own !!??!!. Request information about FORM 16.
It is also important to note that YOU are personally responsible for complying with IT laws, irrespective of the contract agreement you sign with an airline/agency.

[flightknight]

Does anybody have an update on expat taxes. Too much grey area about this topic.