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I was living in India for about 7 and half months in FY2013-2014 working as an independent consultant for a US company. I moved to USA for employment on Nov 20 2013 to work as an employee for the same company. Will my US salary be taxed in India for FY2013-14?

Num of days in India ~ 233
Num of days outside India ~ 132

Based on my research, I am ROR for FY13-14 as I lived in India for >= 182 days.

For Nov and Dec 2013, I am not resident in US but resident in India. So, I agree that my salary for Nov/Dec should be taxed in India.

I am still reading the USA-INDIA DTAA but can it be argued that since I had a closer connection to USA in 2014 (as I am living and working in USA for 11+ months of 2014), my salary for Jan-Mar 2014 is not taxable in India?

Thank you.

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From India point of view for the Financial Year 2013-2014 you salary in US for the period till 31 March 2014 is taxable in India as well. India and US had a DTAA and you can claim a relief for the tax you have paid in the US.

The salary from 1st April 2014 will not be taxable in India provided you have spent more that 182 days for the FY 2014-15.

The code is clearly laid out in the income tax guide

The 60 Day criteria is increased to 180 days incase one leaves for employment outside India.

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  • Thanks Dheer. Are there any AARs/rulings/court cases regarding this?
    – user674669
    Nov 30, 2014 at 3:08
  • To clarify the 2nd part of your answer, if I return back to India permanently after mid Oct 2015, I would have spent < 182 days in India in FY14-15. Will my US salary from Apr-Oct 2015 not be taxable in India? How is that since I will be ROR in India for FY14-15 (Spent >= 60 days in FY14-15 AND >= 365 days in previous 4 years combined)?
    – user674669
    Nov 30, 2014 at 3:11

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