I am an Indian citizen and I have some clients in the U.S. who pay me in dollars. I have filled the W-8 BEN form and according to the U.S. taxation laws no tax is withheld with the U.S. government on my income towards the services I perform. I want to know if I need to pay taxes on that income to the Indian government? If yes, then do I need to declare it as income from other sources? Also, can ask the clients to credit the payments in my wife's name so as to reduce the tax that I have to pay here? Thanks in advance.
Tax on US Income
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Income in Dollars from U.S. Clients Taxable in India as Business Income; Cannot Credit to Spouse to Lower Tax. An individual, an Indian citizen, receives payment in dollars from U.S. clients and has submitted a W-8 BEN form, resulting in no U.S. tax withholding. They inquire whether this income is taxable in India and if it should be declared as income from other sources. Additionally, they ask about the possibility of having payments credited to their spouse to lower tax liability. A respondent advises that the income is taxable in India under the category of income from business and profession. (AI Summary)