A Beginner’s Guide to ITIN Number for Indians Doing Business in the USA

If you are an Indian entrepreneur, freelancer, or investor earning income from the United States, you may have heard about the ITIN number. For many non-U.S. residents, getting an ITIN is the key to staying compliant with U.S. tax laws, receiving payments smoothly, and avoiding unnecessary penalties.

However, the process can seem confusing — especially if you are applying from India. That’s why we’ve created this step-by-step beginner’s guide to help you understand ITIN India requirements, application steps, and how USAIndiaCFO can simplify the entire process for you.

What is an ITIN Number?

An ITIN stands for Individual Taxpayer Identification Number. It is a nine-digit number issued by the U.S. Internal Revenue Service (IRS) to individuals who are required to have a U.S. taxpayer identification number but are not eligible for a Social Security Number (SSN).

Think of the ITIN as your U.S. tax ID if you’re not a U.S. citizen or green card holder. It allows the IRS to track your tax filings and ensures that you meet your obligations under U.S. tax law.

Why Do You Need an ITIN in India?

If you’re living in India but earning income from U.S. sources, there are several reasons why you may need an ITIN:

1. To File U.S. Taxes

If you’re required to file a U.S. tax return but are not eligible for an SSN, you’ll need an ITIN.

2. To Receive Certain U.S. Payments

Some companies, marketplaces, and payment platforms require an ITIN to release funds to non-U.S. residents.

3. To Claim Tax Treaty Benefits

India and the U.S. have a Double Tax Avoidance Agreement (DTAA). With an ITIN India, you can claim reduced tax rates on certain types of income and avoid double taxation.

4. To Invest in the U.S.

Whether it’s real estate or U.S. stock markets, many investment transactions require an ITIN for proper reporting.

5. For Business Ownership

If you own a U.S. LLC or corporation, an ITIN may be necessary for tax compliance, especially if you take profits as an individual.

Who Needs an ITIN in India?

You may need an ITIN if you are:

An Indian business owner with a U.S. company

A freelancer or consultant serving U.S. clients

A remote employee working for a U.S. company without an SSN

An investor in U.S. real estate or stock markets

A beneficiary of a U.S. trust or estate

How to Apply for an ITIN Number from India

Applying for an ITIN number from India requires submitting the correct forms and documents to the IRS. Here’s how the process works:

Step 1: Complete IRS Form W-7

This is the official ITIN application form. You’ll need to state the reason you’re applying and provide personal details.

Step 2: Prepare Supporting Documents

The IRS requires proof of your foreign status and identity. For Indian applicants, this usually includes:

Passport (primary document)

Or a combination of national ID, birth certificate, and other valid documents

Step 3: Include Your U.S. Tax Return

In most cases, you must attach your first U.S. federal tax return to the ITIN application unless you qualify for certain exceptions (like being a partner in a U.S. business or claiming treaty benefits).

Step 4: Submit the Application

You can apply:

By mailing the form and documents to the IRS in the U.S.

Through an IRS Certified Acceptance Agent (CAA) who verifies your documents so you don’t have to send your original passport

In person at certain IRS offices (if you are in the U.S.)

Step 5: Wait for IRS Processing

It typically takes 6–8 weeks for the IRS to process ITIN applications, though it can be longer during peak tax season.

Challenges of Applying for ITIN from India

While the steps look simple on paper, the reality is that many Indian applicants face challenges such as:

Long delays due to incomplete forms

Rejection for not meeting IRS requirements

Risk of sending your original passport overseas

Difficulty understanding tax treaty rules

This is why it’s smart to work with an experienced U.S. tax service that specializes in helping Indian applicants.

How USAIndiaCFO Makes ITIN Application Easy

USAIndiaCFO is a trusted partner for Indian entrepreneurs, freelancers, and investors looking to comply with U.S. tax rules. They understand the IRS requirements inside and out and make the process hassle-free.

What USAIndiaCFO Offers:

ITIN application assistance for individuals and business owners in India

Certified Acceptance Agent (CAA) services, so you don’t need to send your passport to the U.S.

Help in claiming tax treaty benefits between India and the U.S.

End-to-end guidance on U.S. tax compliance for Indian residents

By working with USAIndiaCFO, you can avoid delays, reduce the risk of rejection, and get your ITIN number faster — without losing sleep over paperwork.

Example: How USAIndiaCFO Helped an Indian Freelancer

Amit, a graphic designer from Bengaluru, started working with U.S. clients through an online freelancing platform. The platform withheld 30% of his payments because he didn’t have an ITIN.

He reached out to USAIndiaCFO, who helped him apply for an ITIN as a non-U.S. resident, claim treaty benefits, and reduce his withholding tax rate to just 10%. Within two months, Amit was receiving more of his hard-earned income.

Tips for a Smooth ITIN Application

Fill out the W-7 form completely and accurately — even small mistakes can delay your application.

Use a CAA if possible to avoid mailing your passport overseas.

Apply early if you need the ITIN for tax season to avoid last-minute issues.

Keep copies of everything you submit to the IRS.

Final Thoughts: ITIN is Your Key to U.S. Tax Compliance

If you’re in India and earning U.S. income, the ITIN number is essential for filing taxes, claiming treaty benefits, and avoiding unnecessary tax deductions.

Instead of navigating the complex process alone, let professionals guide you.