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I am AK, I have joined as a research scholar on J-1 Visa at Chicago University. I had claimed for Tax exemptions under the US - India Treaty, My Finance officer says that The treaty between the US and India has a retroactive clause. If I stay in the US for longer than 24 months, I may be taxed from the first day. I am in a Fix now, Is it true that I will be Taxed on a retroactive base? I have plans for staying in the US after two years but it all depends on my research funds and that very difficult to predict right now. Please let me know how best I can handle this tricky situation. Thanks, AK

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    Hmmm, see article 21 of this IRS document on India-USA tax treaty. The last bit talks about a "saving clause" where you would still be exempt from US tax if you do not become a US immigrant. You should talk to an accountant that's dealt with this to get a 2nd opinion.
    – mkennedy
    Commented Apr 10, 2020 at 23:46
  • Did you get the answer for this? I am also looking for same answer.
    – Uday
    Commented Feb 6, 2023 at 2:04

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