India And Us Totalization Agreement

India supports the proposed discussions with the US Social Security Administration (SSA) on the long-standing totalization agreement, believing that the two countries` systems are now more compatible than before. The deal could help Indian companies in the United States save up to $4 billion in social security contributions a year. Prime Minister Narendra Modi spoke of the need for the totalization agreement, while Foreign Minister Harsh Vardhan Shringla said that the two issues relating to the H-1B visa, which has a direct impact on the IT sector, and totalization agreements with the US authorities were addressed. If you have any questions about international social security agreements, please contact the Office of International Social Security Programs at 410-965-3322 or 410-965-7306. However, do not call these numbers if you want to inquire about a right to an individual benefit. “The issue of totalization has also arisen. There was a feeling that Indian pros who spend less than eight years and contribute to social security… really need to get that money back,” Shringla said Tuesday. India on Tuesday called on the United States to consider signing a totalization agreement to avoid a double deduction of the incomes of workers working in the other company`s countries and to allow Indian partial-unemployment workers in the United States to recover billions of dollars in social security deposits. India has signed totalization agreements with several European countries whose social security systems are different from the Indian and US systems. Therefore, the various social security systems should not be an obstacle to the signing of the agreement between the two countries. A totalization agreement is essentially a social security agreement (SSA) which aims to abolish the double taxation of social security for international workers. In cases where countries that do not share totalization agreements do not have totalisation agreements when a worker from one country chooses to work in another country, he is required to pay social security contributions in the host country and country of origin.

A SSA should allow international mobile workers to “total” their overall contributions in both countries to determine their entitlement to social benefits. The United States has agreements with several nations, the so-called totalization conventions, in order to avoid double taxation of income in relation to social contributions.