Archive · 28 Jul 2026
Indian Tax on US Salary for Remote Work
If you are an Indian citizen living in India and working remotely for a US company, you are considered a resident and ordinarily resident (ROR) in India.
This means you have to pay taxes on all your income, no matter where it comes from.
Even if your salary is paid into a US bank account, it is still taxable in India.
The Income Tax Act, 2025, which started on April 1, 2026, says that your salary is taxable in India.
The India-USA Double Taxation Avoidance Treaty (DTAA) also says that India has the right to tax your salary.
You also have to report any foreign assets and income in your Indian income tax return.
Additionally, you must bring your salary back to India within 180 days of receiving it.
As a resident and ordinarily resident (ROR) in India, you are liable to pay tax on global income, including salary from a US company.
The Income Tax Act, 2025, applies to your salary income, making it taxable in India regardless of where it is received or credited.
The India-USA Double Taxation Avoidance Treaty (DTAA) grants India the right to tax your salary earned while working remotely from India.
You must disclose foreign assets and income in your Indian income tax return.
Under India’s foreign-exchange law, your salary must be repatriated to India within 180 days of receipt.
- Who
- An Indian citizen working remotely for a US company
- What
- Tax liability on salary earned from a US company while working remotely in India
- When
- Starting from July 2026
- Where
- India
- Why
- As a resident and ordinarily resident (ROR) in India, global income is taxable in India
Tax Liability in India
Avoiding Tax in India
Residency Status
Tax Liability in India
As a resident and ordinarily resident (ROR) in India, you are liable to pay tax on global income, including salary earned from a US company.
Avoiding Tax in India
If you can establish non-resident status, you might avoid tax liability in India.
Income Tax Act, 2025
Tax Liability in India
The Income Tax Act, 2025, applies to your salary income, making it taxable in India regardless of where it is received or credited.
Avoiding Tax in India
There is no provision in the Act that allows you to avoid tax if the salary is credited to a US bank account.
Double Taxation Avoidance Treaty (DTAA)
Tax Liability in India
The India-USA DTAA grants India the right to tax your salary earned while working remotely from India.
Avoiding Tax in India
The DTAA does not provide a mechanism to avoid tax in India.
- Residency Status
- Resident and Ordinarily Resident (ROR) in India
- Income Tax Act, 2025
- Applicable from April 1, 2026
- Global Income Taxability
- Taxable in India for ROR
- Double Taxation Avoidance Treaty (DTAA)
- India has the right to tax salary earned while working remotely from India
- Foreign Asset Disclosure
- Required in Schedule FA of Indian income tax return
- Foreign Exchange Law
- Salary must be repatriated to India within 180 days