I'm an exchange student doing graduate work in the US with a visa. I did some consulting work for a company at home in India (where I am a citizen) this summer. Do I have to claim this income to the US? Will I have to pay taxes on it?
You should consult with a U.S. tax advisor, but if you are not a U.S. citizen or resident, then probably not. And even if you have a U.S. filing requirement, there is a good chance that you will owe little or no tax due to the foreign earned income exclusion. Review the IRS website http://www.irs.gov/publications/p54/ch04.html for more information, and check with a professional tax advisor to be certain.