US H-1B Visa Delays Create Multifaceted Crisis for Indians: 182 Days in India Could Trigger Tax and Job Risks

Indians working in the United States on H-1B visas are facing a severe crisis due to delays in visa stamping. With many unable to return to their US jobs, employees are now confronting risks to their employment, salary reductions, and even potential exposure to Indian income tax regulations.

Trump Administration Policies Cause Visa Bottleneck

According to sources, the Trump administration’s stringent scrutiny of applicants’ social media activity has led to prolonged delays in visa interviews and stamping. Appointments have been postponed to March, April, or later, leaving numerous Indian professionals stranded in India. Immigration experts highlight that employees working for startups and smaller companies are particularly affected, as prolonged absence could jeopardize their positions.

182-Day Rule Heightens Tax Concerns

A major concern for Indian H-1B holders is the Indian income tax law, which considers an individual a tax resident if they spend 182 days or more in India within a financial year. Ankita Singh, founder of law firm Sarvank Associates, explained that extended stays due to visa delays could expose employees to Indian tax obligations, creating a dual financial burden.

Employers Also Facing Compliance Challenges

US companies are scrambling to manage the situation. Some are allowing stranded employees to work remotely from India, while others are redirecting them to affiliate offices within the country. Experts note that this creates corporate compliance challenges for employers, who may also fall under Indian tax jurisdiction if they maintain business activities in India.

Termination Threats Spark Legal Action

Reports indicate that some employees, fearing termination, have sought legal counsel. Sukanya Raman, Country Head of immigration law firm Davis & Associates, stated, “Several US companies have issued ultimatums, demanding employees return to work after exhausting paid leave; failure to comply could result in termination.”

A Critical Situation for Skilled Indian Workers

The ongoing H-1B delays underscore the fragility of global mobility for skilled Indian professionals. With jobs, income, and tax liabilities all at stake, both employees and employers are navigating an unprecedented and complex legal and financial landscape.