Withholding Tax

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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

7 Replies

Hi @Tech_Admin, we understand there may be a lot of questions when it comes to tax withholding. We recommend reaching out to the team at instructorsupport@udemy.com with your questions or any other doubts you may have and they will be happy to consult with Udemy's tax team and provide you with the answers you need!

Respected Maria Madam,

Thanks for your response. I will surely write to instructorsupport@udemy.com, why I have mentioned this query in the community so that I can get replies from existing Indian instructors. I wanted to know, how they have solved their issues. 

 

Regards

 

Hi @Tech_Admin ,

 

Have you got the reply?

 

 

Hi @VigneshRK what's your rate of withholding tax?

I have filled 15% as I'm from India @Tech_Admin 

So overall for every Indian instructors, the rate of withholding tax is 15%. Do you know anyone from India whose withholding tax is 0%?  

@Tech_Admin NO, even I'm looking for the same

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