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I'll be soon moving to Harvard and so far, I've been freelancing (web-development) with clients globally.

Before we go any further, I must specify that I'm from India and have paid taxes to Indian Government on all the taxable earnings.

August this year, I'll be in USA and will continue to freelance. So, how am I supposed to pay taxes on the money that I'll make? Should that be paid to US government or Indian? I've no idea about how I should proceed.

UPDATE: I will remain an Indian Citizen and will be on F1 Visa in America.

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  • This depends on your Tax Residency [Please provide more details]. If you are determined as Resident Indian for tax purposes, you have to pay tax in India. If you are determined as Resident Alien in US for tax purposes you have to pay tax in India. Note: The status are not mutually exclusive, i.e. you can be Resident Indian as well as Resident Alien and pay taxes on same income in both places. – Dheer Mar 2 '17 at 6:40
  • @Dheer Updated the answer. :) – Anoneemus Mar 2 '17 at 6:41
  • Make sure you are allowed to work with that Visa. – mhoran_psprep Mar 2 '17 at 11:27
  • I'll be in F1 visa and F1 Visas have limit, which is around 20 hours per week (I'm not sure about the number of hours but limit exists). So wait a second, does it mean that I can't freelance online for over 20 hours a week if I'm in USA? – Anoneemus Mar 2 '17 at 12:39
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August this year, I'll be in USA and will continue to freelance

Assuming from 15th August 2017 to March 2018, you will be in US, then for the Tax year 1st April 2017 to 31st March 2018, you will be deemed a Non-Resident Indian. As NRI, you would need to pay taxes on income from 1st April 2017 to 15th August 2017 in India. You need not pay any taxes in India for the period of 15th August 2017 to 31st March 2018 in India.

Requesting colleagues to put a US view on tax-ability of this income.

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  • Does it mean that NRIs do not pay taxes to Indian government or is there some special scenario in which they don't? Also, looking forward to response from your colleague. Thank you very much. – Anoneemus Mar 2 '17 at 12:37
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    If a person is deemed Non Resident Indian, any income generated outside India is not taxable in India. So your freelancing income is not taxable in India. However your income from FD / Rent etc in India is taxable in India. Note as an NRI you can't hold normal savings account. Convert them into NRO. – Dheer Mar 2 '17 at 13:02
  • Just pinging if you can ask your friend to put his views here. – Anoneemus Mar 4 '17 at 8:18

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