Remote Work for US Firms: Is Your Dollar Pay Taxed?

Many Indians working remotely for foreign companies think getting paid in a US account means no Indian tax. Wrong. If you live in India for 182+ days a year, you're a tax resident and every rupee — or dollar — you earn globally is taxable here.

Here's what happened: India taxes residents on their worldwide income under the Income Tax Act, 1961 — where you're paid doesn't matter.. If you spend 182 or more days in India in a financial year, you are classified as a Resident and Ordinarily Resident (ROR) — globally taxed.. India has Double Taxation Avoidance Agreements (DTAAs) with 90+ countries including the US, so you can claim credit for tax already paid abroad..

What you should do: Count your days: if you've been in India 182+ days this financial year, file as a resident and declare all foreign income in your ITR.. Check the India-US DTAA: if your US employer withholds taxes, claim a Foreign Tax Credit (FTC) in India using Form 67 to avoid paying tax twice.. Consult a CA who handles NRI and cross-border taxation — wrong residency classification can trigger notices, penalties, and back-tax demands from the IT department..

File Form 67 on the IT portal before submitting your ITR to claim Foreign Tax Credit — missing this form means you lose the double-taxation relief entirely, even if you're legally entitled to it.

For readers weighing their credit and loan options, our personal loan guide and CIBIL score resources put this update in context.