pk
Level 15
Level 15

Deductions & credits

@selvi , please can you tell more about the dates  -- which date   you entered with H1-B;  was this your first entry for any reason  in the last two years  i.e. 2021, 2022 and 2023 ;  Are you still here in the USA ?

 

I suspect what your employer did  is  to  take advantage of a loop hole here   ( till you passed the SPT,  they paid you in INR and thereby  put you at risk of not having paid the FICA taxes and withholding of  Federal and State  taxes ) --- you worked in the USA with a work visa  and so this income should be  US sourced and taxed as such .  I hope I am wrong in this.

 

Once you passed SPT, then  world income would be taxed and therefore  pay in US dollars.     Also if you are resident of US ( passed the SPT )  you cannot be paying taxes to India  -- per  US-India Tax Treaty.

 

Again , I may be jumping to conclusions without sufficient facts.

 

Please answer my questions  and I  will come back and help.

 

Namaste ji 

 

pk