Withholding Tax

Dear Indian Instrcutors,

India has Double Tax Avoidance Agreement (DTAA) with USA. So if we are paying tax in our own country as a resident individual then the tax should be exempted in other country. This is also clearly mentioned in the official document by Internal Revenue Service (IRS), Article 25 - Relief from Double Taxation, Paragraph 3(b).

"3. For the purposes of allowing relief from double taxation pursuant to this Article, income shall be deemed to arise as follows:

(b) income derived by a resident of a Contracting State which may not be taxed in the
other Contracting State in accordance with the Convention shall be deemed to arise in the first mentioned State."

So I just want to understand, we will be paying 15% to the US government every month and then another 20% to Indian Government while filing Income Tax Return?

And, if we are doing so, then the other option of DTAA says that the resident country (INDIA) will also give you rebate of whatever tax you have paid in other country. So in that case, the IRS or Udemy should give us a proper document for the complete fiscal year tax deduction. We can show this to Indian government and claim for Foreign Tax Credit (FTC).

Thanks & Regards,

Indian Udemy Instructor