I'm an Indian citizen currently living in the USA on an H1B visa and have been working here since 2022. During FY 2025–26, I spent around five months in India because of a family emergency while continuing to receive my U.S. salary. Now I'm preparing my tax documents and have become confused about my tax residency.
According to my calculations, I may qualify as a tax resident in India because of the number of days I stayed there. At the same time, I've been filing U.S. tax returns every year and meet the U.S. Substantial Presence Test as well. My accountant in the U.S. says I'm a U.S. tax resident, but someone in India told me I could also become an Indian tax resident in the same financial year.
Has anyone actually been considered a tax resident in both countries at the same time?
If that happens, how do you avoid paying tax twice on the same income? Does the India–USA Double Taxation Avoidance Agreement (DTAA) automatically solve the issue, or do you have to claim treaty benefits separately while filing returns?
I'm trying to understand how this works before filing my Indian Income Tax Return. Based on your experience, how did you determine your tax residency, and did your accountant recommend relying on the DTAA tie-breaker rules? I know every situation is different, but I'd really appreciate hearing from anyone who has gone through something similar.
I went through this while working in Canada. Initially, I thought tax residency depended only on the number of days spent in India, but there were other factors under Canadian law too, like where my permanent home and personal ties were located.
My CA reviewed both countries' domestic tax rules first and then checked the India-Canada DTAA. We didn't simply rely on the day count because that wasn't enough to determine everything.
The process wasn't difficult, but it did require keeping travel records, employment documents, and proof of residence. I'd definitely recommend maintaining accurate records if you've lived in two countries during the same financial year.
I faced a similar situation while living in the UK. Under UK tax rules, I was considered a tax resident there, but after spending more time in India than expected, I wasn't sure about my Indian residential status either.
My accountant explained that it's possible to be regarded as a tax resident under the domestic laws of both countries. That's where the DTAA became important. We looked at the treaty between India and the UK, which contains tie-breaker provisions to determine which country gets primary residence status for treaty purposes.
I also obtained a Tax Residency Certificate (TRC) from the UK tax authorities because it was needed to support my treaty claim. Every situation is different, so I wouldn't assume the same outcome applies to everyone.
I don't think there's a simple yes-or-no answer because each country's residency rules are different.
One common misunderstanding is assuming that becoming a resident in one country automatically makes you a non-resident elsewhere. That's not always true.
A colleague of mine was treated as a resident under both India and the UK rules during one tax year. His advisor applied the DTAA tie-breaker provisions after reviewing his permanent home, habitual residence, and personal connections.
If your case involves salary, investments, or rental income in multiple countries, I'd strongly suggest speaking with someone familiar with cross-border taxation. Requirements can change, and treaty interpretation depends on individual facts.
I'm based in Canada, and something similar happened after I accepted a temporary assignment in India.
One thing I learned is that "tax resident" doesn't always mean the same thing in every country. It's possible to satisfy the domestic tax residency rules of more than one country during the same tax year.
In my situation, I still had to report income in both jurisdictions, but foreign tax credits and the DTAA helped prevent double taxation. My accountant also reminded me that treaty benefits aren't always automatic—you generally need to claim them correctly while filing your returns and keep supporting records.
The biggest challenge was tracking my travel dates accurately. I kept copies of boarding passes and passport stamps because both accountants wanted precise day counts.
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Yes, dual tax residency can happen, and that's what confused me when I moved to Australia.
In my case, I had to determine my residential status separately under Australian tax law and the Indian Income-tax Act. After that, my tax advisor reviewed the applicable DTAA to see whether the treaty's tie-breaker rules applied.
One important lesson I learned was not to assume that being an NRI automatically means you're not a tax resident in India. Your tax residency is determined under the relevant tax laws, which may differ from immigration or visa status.
Since treaty provisions and tax laws can change, it's always worth checking the latest guidance before filing.