Is this income indian or foreign income?
This query is : Resolved
20 November 2024
I left my job with an Indian company and joined an US affiliate. The US company offered me a salary and a signing bonus. The signing bonus is not a part of the employment offer letter but a separate letter saying that i have to return this if i leave within one year. Later, it was decided that the signing bonus will be paid from Indian company payroll. Since it is paid from indian payroll to my indian bank account and not a part of the offer letter, Is it indian income or foreign income?
It was not reported in my US tax w2 and the indian company told me that it was documented as employee bonus in indian company records.
It was not reported in my US tax w2 and the indian company told me that it was documented as employee bonus in indian company records.
20 November 2024
It's Indian income as it's paid by Indian company to Indian bank account.
20 November 2024
Thank you so much sir. Can in anyway this be classified as foreign income since I signed the letter initially with the US affiliate?
20 November 2024
No, as it's paid from Indian pay roll to Indian bank account.
21 November 2024
in addition to this, please do not forget to report this income in your US tax return as a foreign income.
21 November 2024
Thank you so much for your reply. You mean in US it is going to be considered foreign income, right? I am not a resident in USA this tax year actaully.
21 November 2024
Okay. I would leave the determination of what income needs to be disclosed to your US CPA. Just ensure that you inform him about this transaction. The threshold for taxable foreign income is very high. So I do not expect any additional taxability. But better to disclose everything to the CPA to ensure proper tax filing.
22 November 2024
Thank you Nikhil, I asked my CPA, he told me that since i am a NRA (Non resident alien) in USA and also a non US citizen, only my US source income is taxable.
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