"Letting stranded employees work remotely from India seems like a workaround—but creates serious tax risks. If employees work from India long enough, companies may be deemed to have a taxable business presence in India."
"Workers stuck in India may owe income tax in India if they stay long enough. Extended stays can shift them into Indian tax residency, changing how their global income is taxed."
"The situation turns what was supposed to be a short trip for visa stamping into a prolonged legal/financial limbo. Employees are caught between immigration policy, tax law, and employer risk decisions—with little control over any of them."
Thousands of H-1B workers are stranded in India due to delays in visa interviews caused by new U.S. social media screening requirements. This situation complicates tax and business operations for U.S. companies, leading to financial and mental stress for employees. Allowing remote work from India poses tax risks, potentially classifying companies as having a taxable presence in India. Employees face dual living costs, tax uncertainty, and potential pay disruptions, while companies must navigate complex decisions regarding remote work and employee status.
Read at India Currents
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