I'm an Indian citizen. I'm doing a consulting role for a news organization in U.S. and getting paid on an hourly basis. The income would not exceed $1600 per month. The organization has asked me to file a W8-BEN form. Will my income be taxed? There is no slab for minimum income without tax? India and U.S. have a tax treaty. I don't know under which Article do I fall and the amount of tax that is deductible. Can you please help?

  • where are you located? – littleadv Jan 3 '15 at 5:26

The W8-BEN form is used to declare your non-US tax status. This is used only for foriegners. By declaring this form, that will not be with-held (Tax witholding is basically TDS in Indian terms). In simple language, they will not deduct tax. They will pay you amount without deducting tax. It is upto you to see if you are liable to pay taxes in US or not and pay accordingly.

If you were a US tax payer, then normally they might deduct tax and then pay.

Read : http://en.wikipedia.org/wiki/IRS_tax_forms

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