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  • Taxation Problem

    I am a Resident of India. Currently I am working as an Intern on J1 visa at an organisation in San Francisco under a 12 week contract. I am receiving my salary on a 15 day basis. The Organisation is currently deducting TDS as per their Income Tax law i.e. on Annual basis. I can claim the refund of the excess tax amount by filing the Income Tax Return in Form No. 1040 NR EZ.
    But I want to know if there is any provision by which I can ask my employer to deduct tax only on the amount which will be paid to me i.e. for only 12 weeks and not on the per annum basis.
    For Example:
    My total salary for 12 weeks period will be approx. $22500 and the tax amount should be approximately $2000 including Federal, State and City Tax However the employer will deduct $5625 on the basis of annual income approximate $100000.
    Therefore, I would like to know that whether I can ask the employer to deduct only the calculated amount i.e. $2000 instead of $5625 or I will have to pay $5625 and claim refund of the excess amount paid. Is there any form by which I can inform employer to deduct only the tax payable on my Income?

  • #2
    Originally posted by Alok Kumar Goenka View Post
    I am a Resident of India. Currently I am working as an Intern on J1 visa at an organisation in San Francisco under a 12 week contract. I am receiving my salary on a 15 day basis. The Organisation is currently deducting TDS as per their Income Tax law i.e. on Annual basis. I can claim the refund of the excess tax amount by filing the Income Tax Return in Form No. 1040 NR EZ.
    But I want to know if there is any provision by which I can ask my employer to deduct tax only on the amount which will be paid to me i.e. for only 12 weeks and not on the per annum basis.
    For Example:
    My total salary for 12 weeks period will be approx. $22500 and the tax amount should be approximately $2000 including Federal, State and City Tax However the employer will deduct $5625 on the basis of annual income approximate $100000.
    Therefore, I would like to know that whether I can ask the employer to deduct only the calculated amount i.e. $2000 instead of $5625 or I will have to pay $5625 and claim refund of the excess amount paid. Is there any form by which I can inform employer to deduct only the tax payable on my Income?
    You would have to claim refund later on. As far as I know this is the way tax is deducted even in India; based on a projected income.

    This is my opinion not legal advice.

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