J1 US-India treaty: 2 years retroactive clause

siddharthbhandari — Tue, 10 Feb 2026 10:21:42 GMT

Hi,

(my question is similar to the one asked by @pkm4 )

I am an Indian citizen on J1 (research scholar) visa since Aug-2021. I claimed federal tax exemption under the US-India tax treaty for the years 2021 and 2022. However, there is a retroactive clause in the treaty which says that if the research scholar overstays the 2-year limit then they lose the benefit for the past 2 years as well. At places I have read that article 21 of the IRS document on India-USA tax treaty talks about a "saving clause" where you would still be exempt from US tax if you do not become a US immigrant.

Can you please advise what should be my next steps?
1> Should I file an amended return. If so, will I have to pay any penalty/interest? What is the procedure?
2> Should I just file my return for this year and wait for the IRS to send a notice?
3> Does the saving clause apply in my case?

Thanking you in advance for your assistance.

Re: J1 US-India treaty: 2 years retroactive clause

Anonymous_ — Mon, 01 Jan 2024 23:05:43 GMT

You paged the wrong user; it's @pk who will most likely post a response here in the near future.

Re: J1 US-India treaty: 2 years retroactive clause

siddharthbhandari — Tue, 02 Jan 2024 07:24:53 GMT

Thank you @Anonymous_

topic J1 US-India treaty: 2 years retroactive clause in Deductions & credits

J1 US-India treaty: 2 years retroactive clause

Re: J1 US-India treaty: 2 years retroactive clause

Re: J1 US-India treaty: 2 years retroactive clause