Unique Treaty Provisions (continued)

India

India is the only country whose international students and business apprentices on F, J, or M immigration status are allowed to use the standard deduction instead of itemizing deductions on their U.S. income tax return. An Indian student may take a standard deduction equal to the amount allowable on Form 1040.

Tax treaty benefits for a scholar (teacher) from India differ from those for a student. The scholar's income is not taxable if present for no longer than two years; however, the scholar benefit for Income Code 19 is lost retroactively if the visit exceeds two years. (The Indian scholar is not allowed the standard deduction.)

Students who are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty can claim their dependents if they meet the same rules that apply to U.S. citizens.