Totalization Agreement between India and the United States: What You Need to Know
Totalization agreements are bilateral social security agreements between two countries that aim to eliminate double social security taxation for individuals who work in both countries. In 2015, India and the United States signed a Totalization Agreement that allows for the coordination of social security benefits between the two countries. Here`s what you need to know about this agreement:
What is a Totalization Agreement?
A Totalization Agreement is a bilateral agreement between two countries that aims to eliminate the double taxation of social security contributions for individuals who work in both countries. Without such an agreement, individuals may be required to pay social security taxes in both countries, resulting in double taxation. Totalization agreements coordinate social security programs between countries and ensure that individuals are not required to pay social security taxes twice.
What Does the India-US Totalization Agreement Cover?
The Totalization Agreement between India and the United States applies to individuals who work in both countries and who may be subject to social security taxes in both countries. The agreement covers both Indian and US social security systems, including retirement, disability, and survivors` benefits. The agreement also applies to self-employed individuals who would otherwise be subject to double social security taxation.
How Does the Totalization Agreement Benefit Individuals?
The Totalization Agreement between India and the United States benefits individuals in several ways. First, it ensures that they are not subject to double social security taxation in both countries. This means that they pay social security taxes only in the country in which they are working and contributing to the social security system. Second, the agreement ensures that individuals are eligible for social security benefits regardless of where they work or reside. Finally, it makes it easier for individuals to transfer social security credits between the two countries, which can help them qualify for social security benefits in both countries.
What Are the Eligibility Requirements for Benefits Under the Totalization Agreement?
To qualify for social security benefits under the Totalization Agreement between India and the United States, individuals must have contributed to the social security systems of both countries for a certain period. The specific eligibility requirements depend on the type of benefit being claimed, as well as the number of social security credits earned in each country. Individuals who are unsure about their eligibility for benefits under the agreement should contact the social security agency in the country where they reside or have worked.
Conclusion
The Totalization Agreement between India and the United States is an important agreement that aims to protect the social security rights of individuals who work in both countries. The agreement eliminates double social security taxation and ensures that individuals are eligible for social security benefits regardless of where they work or reside. If you are an individual who works in both India and the United States, it is important to be aware of this agreement and to understand how it applies to your social security contributions and benefits.