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It might be a simple question, but I am not able to get a definitive answer to this anywhere.

I live in USA, have an H4 EAD and I do some freelance work while living physically in USA with clients in USA and India both. The clients in India transfer me money in my Indian NRO account. How is this income treated for tax purposes in India and USA?

  1. Is the income taxable in US?
  2. Is the income taxable in India?
  3. Do I have to pay tax both in India and US or if I pay the tax in one country I don't not need to pay in the other country?

I am a NRI for Indian purposes and a resident alien for USA.

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Is the income taxable in US?

Yes it is taxable in US, as the work was done in US and your status is Resident alien.

Is the income taxable in India?

Ideally it is not taxable in India. However getting the funds in NRO complicates things. Check with an CA and he should be able to advise.

Do I have to pay tax both in India and US or if I pay the tax in one country I don't not need to pay in the other country

India and US have DTAA(dual tax avoidance agreement) some relief can be claimed.

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