If I am indian citizen residing in US and earning there, do I have to pay taxes to Indian government..?
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Hi, Say, I am an indian citizen and living and working in US, do I still have to pay some taxes to indian government. My first thought is why should I be paying taxes to indian government because neither am I living in India nor am I employed in India and I am earning in USD. But then my second thought is that I may have to pay some (nominal) taxes to indian government, because I am still holding indian citizenship and hence at any point I can come back to India and start availing facilities in India. Please give me some input to if I am liable to paying taxes to Indian government and in yes/no case, please also give some clue to philosophy behind. Thanks,
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Answer:
I am UK citizen living and working in Canada and I pay only Canadian tax. If and when I return to UK I will pay UK tax. However I recently started getting a small pension from UK and had to complete a special form so that UK tax was not deducted from it as well as Canadian. I doubt if you have to pay Indian taxes on income outside the country. It is called "Double Taxation Relief". However I suggest you look up about Indian Old Age Pensions: it is possible you could be contributing to them even though you are not there. This will be to your advantage in old age.
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