Discover all the tax services we offer
Get an instance service estimate
Comprehensive guides on everything you need to know from planning your expat journey to filing your expat taxes with ease.
Our Country Guides will help you understand the ins and out of your specific U.S. expat tax requirements.
Access up-to-date articles, breaking news, deadline information and in-depth case studies on US expat taxes.
Get the answers to all your questions and browse Greenback’s most frequently asked customer questions.
Sign up for one of our live webinars hosted by our expert accountant team or watch one on-demand today.
Subscribe to our monthly newsletter to get money-saving tips, expat tax news, and exclusive promos.
Learn how our straightforward pricing, easy process, and an expert team makes us uniquely qualified to simplify the hassle of expat tax filing.
We’ve assembled a team only the most experienced, knowledgeable, and friendly CPAs and IRS Enrolled Agents our clients can trust.
Read our client testimonials to get a feel for the Greenback experience straight from the expats we’ve worked with.
We’re featured in many reliable news sources thanks to our reputation as experts on US taxes abroad.
Whatever your expat tax needs, wheverver in the world, we’d love to hear from you.
India is home to more US expats than almost any other country—and it isn’t hard to see why. India has plenty to offer with a vibrant culture, delicious food, and ample career opportunities. But what are India’s tax policies like for an American living overseas? Read on for all the answers you need.
If you live in India, you must pay taxes to the Indian government. Unfortunately, this doesn’t cancel your US tax obligations. The US has a citizenship-based taxation system, meaning citizens must report their income to the IRS regardless of where they live.
As you might expect, this can complicate your expat taxes. To help clear up any confusion, let’s take a closer look at how India may help you pay taxes as an American living overseas.
India has a residence-based taxation system. There are three categories of tax residency under Indian law:
Expats who qualify as ROR are taxed on their worldwide income. Expats who are RNOR or NR are only taxed on income that comes from an Indian source.
As an American expat, you will be considered a resident of India if you meet either of the following standards:
If you do not meet these standards, you will be considered a non-resident for tax purposes. If you qualify as a resident, you will be either a ROR or an RNOR. (See the above section for more.) You will be considered an RNOR and taxed as a non-resident if either of the following is true:
Otherwise, you will be considered a ROR and taxed on your worldwide income.
India taxes both residents and non-residents at the same progressive rates, ranging from 0% to 30%. Below, you can see the standard 2022 Indian income tax rates. (All amounts given in INR.)
For taxpayers between the ages of 60 and 80, there is a basic exemption of 300,000 INR. For taxpayers 80 and older, this exemption increases to 500,000 INR.
India also offers a set of alternate tax rates that Indian taxpayers can opt for. These rates are generally lower, but unlike the standard rates, they cannot be reduced further through deductions or exemptions. The current rates for the optional alternate tax are shown below. (All amounts are given in INR.)
Which tax scheme is better for you? That will depend on your unique tax situation and how many deductions or exemptions you can claim. A qualified expat tax professional will advise you on the best choice in your case.
Just like the US, India maintains a social security program funded by a payroll tax. This tax is mandatory for any business employing 20 or more workers and optional for all smaller businesses. Employees contribute 12% of their salaries to this fund, and employers contribute a matching 12%.
India taxes capital gains resulting from selling various assets, including property and securities. Capital gains are taxed at different rates based on residency status and the length of time the seller held the asset.
India imposes a value-added tax (VAT) on certain goods and services. The rate for this tax ranges from 5% to 28, but it is most commonly set at 18%.
Property is taxed at the local level. The rate for property taxes varies by region.
As with individual taxation, India’s corporate tax policies are based on residency. Resident companies are taxed on their worldwide income, while non-resident companies are taxed on only their Indian-source income. For domestic companies, the rate ranges from 25% to 30%. For foreign companies, the rate is fixed at 40%.
The Indian tax year starts on April 1 and ends on March 31 of the following year. Tax returns are due on July 31. In cases where a taxpayer is required to have their books of account audited, the due date is pushed back to October 31.
When filing taxes in India, married couples must file separate returns. There is no option for filing a joint return.
Yes. The US-India tax treaty defines which country has the right to tax a given income stream, removing the risk of double taxation. In most cases, you will pay your taxes to the country in which you are considered a resident.
No. The US and India do not currently have a totalization agreement in place. This means that Americans who live and work in India may be required to contribute to both nations’ social security systems.
What expat taxes do Americans living in India have to pay? Hopefully, this guide has helped answer that question. If you still have questions, we can answer those, too.
Filing expat taxes doesn’t have to be a hassle. Start your filing process with Greenback today.