Did you realize that, even when you return to india, working remotely while on an H1B visa during the pandemic may affect both your employment and your taxes? This can be a complicated issue, especially for indian nationals who chose to work from home in india after having a job in the US. The scenario is that your income was still taxable in the united states if you were employed in the united states and had an H1B visa in 2022 and 2023. Because of your visa status, you were still regarded as a US taxpayer and had to declare your wages for both years, even if your employer didn't have operations in India. You cannot ignore your US revenue.

Once you return to india, the tax situation gets much more complicated.  The hitch is that the US won't recognize your change of status unless you complete the right processes. Many people believe they can avoid US taxes or take advantage of the Double Tax Avoidance Agreement (DTAA).  Even if your acquaintance hasn't visited the US since 2024, she is not eligible to get the DTAA benefit unless she possesses a Tax Residency Certificate (TRC).
 
Furthermore, she is not free from paying interest on her indian fixed deposits.  Even though the interest may appear small (less than 2.5 lakh), she must nevertheless include it on her indian tax return because failing to do so could cause more serious problems in the future. She might regret skipping this now to avoid a minor tax bill later on when she files for loans, visas, or even just regular paperwork.
 
It is perilous for her to think of feigning unemployment and not filing taxes until she finds employment in India.  Taxes focus on where you've gone and what you've earned, not on your work situation.  This strategy might offer short-term relief, but the gaps in her financial history may show up when she files her return for a vias or with any future employers, leading to penalties and interest.

Even though it seems like a hassle, it's best to deal with this now.  The easiest approach to keep her out of a greater trouble later on is to report all of her income, even if it might seem like an extra responsibility.  Being proactive and making sure her financial documents are correct and organized are key.
 
 
 
 

 
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G GOWTHAM

10/03/2025 11:34 AM