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Important
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For information call now:
(347) 989-4566
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Additional information
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Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
IN
1-800-829-1040
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India - Personal Services Income
Income that residents of India receive for performing personal services in the
United States during the tax year as independent contractors or self-employed
individuals (independent personal services) is exempt from U.S. income tax if
the residents:
- Are present in the United States for no more than 89 days during the tax year,
and
- Do not have a fixed base regularly available to them in the United States for
performing the services.
If they have a fixed base available, they are taxed only on income attributable
to the fixed base.
Income that residents of India receive for personal services performed in the
United States as employees (dependent personal services) is exempt from U.S.
income tax if the residents meet three requirements.
- They are present in the United States for no more than 183 days during the tax year.
- The income is paid by, or on behalf of, an employer who is not a resident of
the United States.
- The income is not borne by a permanent establishment, fixed base, or trade or
business the employer has in the United States.
The exemption does not apply to pay received by a resident of India for services
performed as an employee aboard a ship or aircraft operated in international
traffic by a U.S. enterprise.
These exemptions do not apply to directors� fees and similar payments received
by an Indian resident as a member of the board of directors of a company that is
a U.S. resident.
These exemptions do not apply to income residents of India receive as public
entertainers (such as theater, motion picture, radio, or television artists, or
musicians) or athletes if their net income is more than $1,500 during the tax
year for their entertainment activities in the United States. Regardless of this
limit, the income of Indian entertainers and athletes is exempt from U.S. tax if
their visit to the United States is wholly or substantially supported from the
public funds of the Indian Government, its political subdivisions, or local
authorities.
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