India and the United States have signed a Totalization Agreement in 2018, which aims to enhance the social security benefits for employees and self-employed individuals working in both countries. The agreement will help avoid double taxation and provide more clarity on the social security contributions of Indian nationals working in the United States and vice versa.
The Totalization Agreement comes as a relief for thousands of Indian professionals who work in the United States. Currently, these individuals have to pay social security contributions in both the countries, leading to a considerable financial burden. The agreement will allow workers to receive credit for their contributions made in the other country, thereby enabling them to claim benefits from both.
The agreement covers individuals who are sent to work temporarily in the other country, as well as those who have spent a significant portion of their career in either country. It also applies to family members of such workers.
The Totalization Agreement will simplify tax rules for companies that operate in both countries. The agreement will allow companies to avoid the administrative burden of complying with two different social security systems. They will now only have to comply with one, based on the country where the worker is employed.
The agreement also enhances the relationship between India and the United States, both economically and politically. The deal will allow for the free flow of skilled labor between the two nations. It will also help promote greater economic cooperation and investment between the two countries.
In conclusion, the Totalization Agreement signed between India and the United States in 2018 is a significant milestone for both nations. The deal will simplify the social security rules governing the employment of nationals from both countries, promoting greater economic cooperation and investment between the two countries. The agreement will provide relief for thousands of Indian professionals who work in the United States and help them to avoid double taxation, leading to a considerable financial burden.