DoubleTaxationUnited States – India tax treaty: residence, 183 days, rates
Convention between the Government of the United States of America and the Government of the Republic of India for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed at New Delhi on 12 September 1989)
- Signed: 1989-09-12
- In force since: 1990-12-18
- Official text
If both countries treat you as resident
- An individual resident of both States is deemed a resident of the State in which he has a permanent home available to him; if he has one in both States, of the State with which his personal and economic relations are closer (centre of vital interests). Art. 4(2)(a) of the U.S.–India Convention
- A «resident of a Contracting State» is any person liable to tax there by reason of domicile, residence, citizenship, place of management, place of incorporation or any other similar criterion. Art. 4(1) of the U.S.–India Convention
- If the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he is deemed a resident of the State in which he has an habitual abode. Art. 4(2)(b) of the U.S.–India Convention
- If he has an habitual abode in both States or in neither of them, he is deemed a resident of the State of which he is a national; if he is a national of both States or of neither, the competent authorities settle the question by mutual agreement. Art. 4(2)(c)–(d) of the U.S.–India Convention
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 16(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 90 days in the tax year. | Art. 7, Art. 15 |
| Pension | Only the country of residence. | Art. 20(1) |
| State pension (social security) | Only the source country (for pensions, the paying country). | Art. 20(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 19(1)-(2) |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 19(1)-(2) |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 25%; the country of residence relieves double taxation. | Art. 10(2)(b) |
| Interest (deposits, bonds, loans) | Source country: at most 15%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2)(b) |
| Royalties (copyright, licences) | Source country: at most 15%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 12(2)(a)(ii) |
| Technical, consulting, management services | Source country: at most 15%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 12(2), (4)–(5) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly from real estate: the same. Other property: under certain conditions the source country may also tax (see the article). | Art. 13 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 23(3) |
How double taxation is relieved
- India: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(2)(a)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(1)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.