India US tax treaty: income of indian professor visiting US is exempt from tax in US. Is it exempt in india?

Question

India US tax treaty: income of indian professor visiting US is exempt from tax in US. Is it exempt in india?

Answer 1

Read the rest of the treaty. If the US and India opted for exclusion with progression, your US income will not be taxed in India (but it will increase the tax rate on your Indian income). If they opted for the other method (no idea what it is called in English), your US income could only be taxed in the US (and because it is exempt according to the treaty, it would not be taxed either in the US or India). All in all, you need to read the actual treaty.  

Answer 2

1. If you have J1 visa, then you are exempt for two years from Social Security, Medicare and Federal Income Tax. You may still have to pay state income tax. Read http://taxipay.blogspot.com/2008/04/us-t...

2. For India. You do not report the U.S. income in India only if you are non-resident in India. For this make sure to leave India before September 28, 2008. Read about becoming an NRI Becoming or Retaining Non-resident Status http://mytaxes.in/index.php?topic=108.0  

Also about tax on non-resident income http://mytaxes.in/index.php?topic=100.0.