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Can non-profit organizations pay income tax?

I am going to pay 67% as income tax on my income? Thats Terrible... Help me...?

  • I am a telemarketer from india working for a mortgage company is USA, that company said i need to pay income tax in USA at 37% and now when i get my NET income after taxes. In India i have to again pay 30% as Income tax so i will get just 33% in hand. What should i do? Is there any bilateral tax agreement in which i have to pay a combined income tax for both countries or if possible i have to pay tax only in USA. I am an indian citizen and have never been to USA.

  • Answer:

    Yes,there is Double Taxation Avoidance agreement with USA. So do not worry. And even if there is no DTAA with any country, a RESIDENT Indian , if he has paid tax outside India for which he has proof, he is allowed relief u/s 91 of the I T Act. Your question has only little detail from which complete answer to your specific problem is not possible. But briefly, I can say, you will have to pay only lower of tax rate , paid in India or in USA u/s 91 of the I T Act.Not that , your income will be doubly taxed. Maybe there are situation in which your income may actually get exemption and deduction. Only complete details can give an idea. If your income falls under the categories of income for which India and USA have signed Double Taxation Avoidance Agreement , you will get relief according to the provision of the Agreement and that will supersede all provision of the I T Act. I have JUST started my blog http://q4tax.blogspot.com in FAQ form and first topic chosen is taxation of foreign earnings and earning of non resident. I suggest brows through the FAQ , maybe you will get answer.

Mohit Madaan at Yahoo! Answers Visit the source

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Learn about The Fair Tax movement.

donsabe

It is my understanding that you should not be subject to tax in the United States for income you earn in India for performing personal services there. In general, the US taxes nonresident aliens only on US-source income. If tax is being withheld, you should be able to file at US form 1040NR and claim a refund.

NotEasilyFooled

I am sympathtic with you. But it is the rule for both countries so you can't escape the tax. But before you work for that co. you should know it and discuss with the co. to see if there is another method to lower you income tas.

psmom2006

Sounds like you're hosed. You may wish to address this issue with your own government. As for the IRS, as a foreign national your tax liability is different from a U.S. citizen, so verify with your employer you are being taxed properly.

gailforce_wind

Consider moving and become a citizen somewhere exclusively. No matter how much you make its not worth just making 33% of your take.

useless information

I am assuming you do not have any residency status within the US. You need to hire a competent tax professional familiar with international taxation. The tax treaty between India and the US will define your tax situation and you should be getting tax credits in the US for taxes paid to India. Good luck

extra_37

Find another job.

corvette

Suggest you post to the India category - it's really an issue on your side, not the US. If the situation was reversed, any taxes withheld would be credited against the US tax - so the most a US taxpayer would pay would be the US rate

just_the_facts_ma'am

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