Tax planning for Indian TDS on international payments
Tax Deducted at source is applicable to Employee / Employer [contract employee] relations ... it was also made applicable for cases where an Indian company pays for software products [like MS Word etc] as the product is not sold, but is licensed and is treated as Royalty [unlike sale of a consumer product, that you have, say car] ... Hence it depends on how your contract is worded with your India clients, best is have it as a service agreement. Although services are also taxed, however your contract should clearly specify that any tax in India would be borne by your Indian Client ... Cross Country taxation is an advanced area, you will not find good advice free :) I am an Israeli based citizen who represents and Indian company who sells its products in Israel. As an agent I am entitled to commission on sales on behalf the Indian company who advised that. Any commission paid to you will be applicable to TDS at 20.9% of the commission amount, the tax will be paid and a Tax paid certificate will be given to you.   According to a Bilateral Double tax avoidance treaty if the tax has been deducted in India you will get credit for this tax in Israel.
The key factors here are  You will need to pay tax in the UK only if you live more than 183 days - that too in a tax year. Indian tax system will also classify you as a NR (Non-resident) if you live outside for more than 182 days in a tax year.  In your case, your income will be in India and will stay in India. So there should not be any UK tax until you try and get that money to the UK. I will not go into outlining what if you want to go down that road since it does not apply. As for tax in India, You will need to pay tax since the source of income is Indian.  Hope this helps. "I doubt you will get an answer equal to ""You can't save when you have debt"". Because most mortgages are for decades, very few people would be able to save for retirement if they had to wait to be mortgage free. The difficulty in saving occurs when the interest rate is very high (18% or more) and the interest is not deductible. Such as with credit cards. The minimum payment for your mortgage is 30% of your income. If that doesn't include taxes and homeowners insurance in the 30%, then for the United States that would be considered too large. While the general plan to pay down the mortgage is a good idea, make sure that you are able to handle the minimum payments before starting to increase the payments. Try the minimum for a year or two before getting aggressive The calculation is based on the interest rate of the mortgage, the interest rate of the savings account, and the potential tax deduction of the mortgage and the tax rate on the earned interest. Putting extra money into a mortgage, but missing out on matching retirement money would also have to be figured into the calculation. Make sure you do save for retirement , kids education, and emergencies. Unless your country has a complex system where the money can flow in and out of the mortgage, then once you put extra money into the mortgage you can't get it back when the car dies.  The nice thing about putting extra money into a mortgage is that you can do it either in an organized way, or only when you feel comfortable. So it is not urgent for you to commit to a plan immediately. One thing to avoid is a plan that charges you a fee to add extra money, or charges a fee to switch to a bi-weekly mortgage. While your ideas is good, these plans should never cost any money to start, and may be a scam if a 3rd party gets between you and the lender." You should be aware of the implementation of daily fuel price policy on June 16th 2017. Nowadays, petrol and diesel price are reflecting on a daily basis according to the international market situations and the price fluctuation of USD to Indian National Rupee (INR). So, it would not be easy for customers to find the genuine real-time petrol price without an authentic tool or mobile app. No such law in existence or planning. There are no limits on what you can transfer in or out of the USA, as long as you're not doing tax evasion/money laundering, or violating embargo laws against specific countries and organizations. Explanation why Rob's answer is wrong: There's no, and never has been, withholding requirement when transferring money between own accounts. FATCA doesn't impose any new withholding. It reinforces the existing 30% withholding requirement, and suggests that the 30% withholding requirement may supersede treaty positions. Generally internal legislation cannot supersede international treaties, so I'm very skeptical about the US Gov't ability to enforce this. 30% withholding on payments to  foreign people/entities has always been there. It's not new. Certain payments that are income sourced in the US and being remitted to foreign payees is subject to 30% withholding (unless treaty says otherwise). There's nothing new about it, been like that forever. "Do I need to pay taxes in India in this scenario? For India tax purposes, you would still qualify as ""Resident Indian"". As a resident Indian you have to pay taxes on Global income. It is not relevant whether you transfer the money back to India to keep in US. The income is generated and taxable.  Depending on your contract, presumably you are working as a free lance; certain expenses are allowed to be deducted from your income, for example if you purchase equipment to help carry out the work, stay / entertainment costs, etc. Consult a professional CA who should be able to guide you on what is eligible and what is not. The balance along with your other income will be taxed as per tax brackets. There is exemption for certain category of workers, mostly in entertainment industry where such income is not taxable. This does not apply to your case." I believe I have to pay taxes in US since it is a US broker. No, not at all. The fact that the broker is a US broker has nothing to do with your tax liabilities. You should update the banks and the broker with your change of status submitting form W8-BEN to them. Consult a tax professional proficient with Indo-US tax treaty as to what you should put in part II. The broker might withhold some of your income and remit it as taxes to the IRS based on what you put in W8-BEN and the type of income, but you can have it refunded (if it exceeds your liability) by submitting a tax return (form 1040-NR). You do have to pay tax in India, based on the Indian tax law, for your profits in the US. Consult with an Indian tax accountant on that. If I'm not mistaken, there are also currency transfer restrictions in India that you should be aware of. If you are a citizen of India and working in Germany, then you are most likely an NRI (NonResident Indian). If so, you are not entitled to hold an ordinary Indian bank account, and all such existing accounts must be converted to NRO (NonResident Ordinary) accounts. If your Indian bank knows about NRO accounts, then  it will be eager to assist you in the process of converting your existing accounts to NRO accounts most likely it also offers a money remittance scheme (names like Remit2India or Money2India) which will take Euros from your EU bank account and deposit INR into your NRO account.  Or, you can create an NRE (NonResident External) account to receive remittances from outside India.  The difference is that interest earned in an NRO account is taxable income to you in India (and subject to TDS, tax deduction at source) while interest earned in an NRE account is not taxable in India.  The remittance process takes a while to set up, but once in place, most remittances take 5 to 6 business days to complete. Now, I have kept this money and after interval of 6 month or year whenever the USD price go up, I do exchange with Indian currency and deposit in my account. Now do I have to pay Tax on this money?  No you are not required to pay any tax as the income was accrued when your were NRI for tax purposes. The Foreign currency upto USD 2000 can be held by an individual without any time limit. i.e. you can convert then whenever you want. There is nothing that needs to be declared in Tax Returns.