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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Taxability of foreign service income: such earnings are taxable in India as business or professional income. Income earned by an Indian citizen for services rendered to U.S. clients and paid in dollars, with no U.S. withholding under a W-8BEN, is taxable in India and should be classified as Income from Business and Profession. (AI Summary)
TaxTMI