🇮🇳 🇺🇸 India–US DTAA · Article 4(2)

DTAA Tie-Breaker Walkthrough

Dual resident of India and the United States in the same year? Step through the four-test hierarchy in Article 4 of the India–US Double Taxation Avoidance Agreement and see which country gets the primary taxation right. Stops at the first decisive step.

New here? Read the underlying explainer first: The India–US DTAA tie-breaker, explained.

Step 1 · Article 4(2)(a) — first test

Permanent home

A "permanent home" means a dwelling available to you on a continuous basis (owned or rented long-term), not a short hotel stay or a friend's spare room. Where is one continuously available to you?

Only in IndiaHouse/flat owned or on long-term lease in India onlyOnly in the USHome owned or long-term lease in the US onlyIn both countriesContinuously available dwelling in bothIn neither countryNo permanent dwelling available in either

Source: Convention between the Government of the United States of America and the Government of the Republic of India for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (signed 12 September 1989, entered into force 18 December 1990), Article 4 paragraph 2. Cross-reference: OECD Model Tax Convention Commentary on Article 4.