I am a US citizen. I pay tax on the pension received from India to the US Treasury and submit the IRS form 6166 (Tax Residency Certificate) to the bank in India every year. Till the month of May 2017, it was not deducting tax deducted at source (TDS) from my monthly pension. Suddenly it deducted TDS from my June and July pension. Do I have to avail double taxation relief?






Rikhitha Rikhitha
Answered on February 12,2020

Any person making a payment to an NRI from India must deduct TDS. So the bank should have deducted TDS on payments made to you, unless payments made to you were less than the minimum taxable income of INR2.5 lakh. You must file a tax return both in India and the US. You can take benefit of Double Taxation Avoidance Agreement, for which you need a tax residency certificate. Your income will not be doubly taxed.


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