India Tax & Compliance
One place for the tax side of your India–US money: when you become a US tax resident, what India can still tax, how the DTAA stops double taxation, and how to report Indian accounts, property sales, and remittances correctly. Start with a calculator, then dig into the topic guides.
Quick Answer
NRI tax compliance runs on two tracks at once. On the India side, your residential status is decided by days present in the April–March financial year — 182 days or more makes you Resident, as does 60 days plus 365 across the prior four — and non-residents are taxed only on India-sourced income, usually collected through TDS. On the US side, you report the same Indian accounts regardless: FBAR once all foreign accounts combined top $10,000 at any point, and Form 8938 from $50,000 year-end for a single filer in the US. The DTAA then prevents the same income being taxed twice through the foreign tax credit.
Key takeaways
- • File an FBAR if all your foreign accounts combined exceeded $10,000 at any moment in the year — it is an aggregate test, not per account.
- • Add Form 8938 from $50,000 (year-end) or $75,000 (peak) if you file single and live in the US; double those figures when married filing jointly.
- • Count your India days carefully — 182 days in a financial year changes your Indian residential status and what India can tax.
- • Reclaim over-deducted TDS by filing an Indian return; on property sales TDS applies to the sale value, not the gain.
- • Claim DTAA relief through the US foreign tax credit rather than assuming income is exempt — keep TDS certificates as evidence.
NRI tax compliance means satisfying two tax systems that do not talk to each other. This hub is for Indians living in the USA who still hold NRE/NRO accounts, fixed deposits, mutual funds, or property in India, and who need to know what India taxes, what the US requires them to report, and how NRI income tax rules and the DTAA fit together. The two numbers that drive most of it: 182 days of presence decides your Indian residential status, and $10,000 in combined foreign accounts triggers US FBAR reporting. Below you'll find the reporting thresholds side by side, the India-side obligations including TDS rates and Form 15CA/15CB, calculators for property gains, remittance TCS and RNOR status, and topic guides for each situation.
What Do You Have to Report to the US?
| Filing | Threshold | Filed with | Deadline |
|---|---|---|---|
| FBAR (FinCEN 114) | Over $10,000 combined, any point in the year | FinCEN (BSA e-file) | Apr 15, auto-extended to Oct 15 |
| Form 8938 (FATCA) | $50,000 year-end / $75,000 peak (single, in US) | IRS, with your return | With the tax return |
| Form 8938 (married jointly, in US) | $100,000 year-end / $150,000 peak | IRS, with your return | With the tax return |
| Form 8938 (living abroad, single) | $200,000 year-end / $300,000 peak | IRS, with your return | With the tax return |
| Schedule B, Part III | Any foreign account | IRS, with your return | With the tax return |
Per FinCEN Form 114 and IRS Form 8938 instructions. Verify against current IRS guidance each filing season.
What Does India Still Tax When You Live in the USA?
| India income or action | Taxable for a non-resident? | What to watch |
|---|---|---|
| NRE account interest | Exempt in India | Still US-taxable income and FBAR-reportable |
| NRO account interest | Taxable, TDS deducted at source | File an ITR to reclaim excess TDS |
| Rental income from India property | Taxable, TDS applies | Deductions available; ITR usually worthwhile |
| Sale of India property | Capital gains taxable; TDS on sale value | Consider a lower-deduction certificate |
| Indian mutual funds / shares | Capital gains taxable | PFIC questions arise on the US side |
| Remitting money out of India | Not income, but compliance applies | Form 15CA/15CB and LRS limits |
General education, not advice. Rates and rules change with each Finance Act — confirm with a qualified CA before acting.
US reporting thresholds every NRI should know
FBAR filing threshold
$10,000
Aggregate high balance across ALL foreign accounts at any time in the year.
FBAR deadline
Apr 15 (auto ext. to Oct 15)
Filed via FinCEN BSA, separately from your tax return.
FATCA Form 8938
Varies by filing status
US single: $50k end-of-year / $75k any time; higher for MFJ & taxpayers abroad.
Filed with
IRS return (8938) / FinCEN (FBAR)
Two separate regimes — meeting one threshold says nothing about the other.
Thresholds and deadlines reflect current IRS/FinCEN rules but can change, and your situation may differ. This is educational information, not tax or legal advice — confirm with the official IRS/FinCEN pages or a qualified cross-border CPA before filing.
Command center
Everything you might need this tax year
Grouped by what you're trying to do — start here, U.S. reporting for India assets, India-side compliance, and the calculators that do the math.
Start here
U.S. reporting for India assets
India-side compliance
Calculators
New
India ITR Filing from USA
File your Indian tax return from the USA with a clean checklist: ITR form selection, NRO/NRE statements, Form 26AS, AIS/TIS, TDS refund, rental income, capital gains, and CA questions.
Pillar guide
NRI ITR Filing from USA: Forms, Deadlines, TDS Refunds & Documents
Living in the USA but earning in India? Here's when you may need to file an Indian ITR, which form may apply, the documents to gather, how TDS refunds work, and the exact questions to take to your CA.
ITR-2 for NRIs
ITR-2 is the form many NRIs use when there's no business income — covering salary, house property, capital gains, and other sources, and the route to most NRO and property-sale TDS refunds.
Open →ITR-3 for NRIs
ITR-3 is the form for NRIs whose Indian income includes business, professional, or partnership income — everything ITR-2 covers, plus the business and profession schedules.
Open →Form 26AS, AIS & TIS
Form 26AS, AIS, and TIS are the income-tax department's own record of your Indian income and the TDS deducted. Reconciling them before you file is how NRIs avoid mismatch notices.
Open →Documents checklist
The complete, annotated list of what an NRI in the USA needs to file an Indian return — identity, bank statements, tax-credit records, TDS certificates, property deeds, and US coordination.
Open →New
TDS Refunds & Lower TDS for NRIs
Banks and buyers often deduct TDS before your final tax is known. Learn how NRO interest, rent, property-sale TDS, DTAA paperwork, Form 13, and Indian ITR filing connect.
Pillar guide
NRI TDS Refund from USA: NRO Interest, Property Sale, DTAA & Form 13
Banks and buyers often deduct TDS before your final tax is known. Learn how NRO interest, rent, property-sale TDS, DTAA paperwork, Form 13, and Indian ITR filing connect.
NRO interest TDS refund
Interest on your NRO savings and fixed deposits is taxed at higher NRI TDS rates — frequently more than you actually owe. Here's why, how DTAA and Form 10F can lower it, and how to claim the excess back.
Open →Form 13 lower/nil TDS certificate
Form 13 is how an NRI gets TDS reduced before the payment happens, instead of waiting a year to reclaim it — most valuable on property sales and high-value income where default TDS dwarfs the real tax.
Open →NRI property-sale TDS refund
Sell Indian property as an NRI and the buyer deducts TDS on the whole sale price — usually far more than the tax on your actual gain. Here's how the refund works, and how Form 13 can cut the withholding up front.
Open →TDS refund checklist
Map your income type and what was deducted, then get a document checklist, likely next step, and CA questions.
Open →New
Form 15CA / 15CB & Repatriation Paperwork
Moving money from India to the USA? Learn the document trail — Form 15CA, Form 15CB CA certificate, source-of-funds proof, TDS proof, and the FEMA/bank repatriation request — and the order to do it in.
Pillar guide
Form 15CA & 15CB for NRIs: Repatriating Money from India to the USA
Moving money from India to the USA? Learn the document trail — Form 15CA, Form 15CB, source-of-funds proof, TDS proof, and the FEMA/bank repatriation request — and the order to do it in.
Form 15CA for NRIs
Form 15CA is the remitter's online declaration filed before money leaves India. Here's what it covers for NRIs, the four parts at a high level, and how the acknowledgement reaches your bank.
Open →Form 15CB CA certificate
Form 15CB is a Chartered Accountant's certificate on the taxability of an outward remittance. Here's when NRIs need it, what the CA certifies, and how it connects to the DTAA and Form 15CA.
Open →Repatriating property-sale proceeds
Sold Indian property and want the money in the USA? This is the document and FEMA workflow — TDS proof, 15CA/15CB, the sale and purchase deeds, and the repatriation limit — without re-running the tax math.
Open →NRO-to-USA transfer documents
Moving money from an NRO account to the USA means satisfying the bank on both tax and FEMA. Here's the document checklist banks ask NRIs for — and why NRO is more paperwork than NRE.
Open →15CA / 15CB checklist
Map your source of funds and taxability to a document checklist and whether a CA review is strongly recommended.
Open →New
Parents, Gifts, Inheritance & Form 3520
Money or assets coming from family in India? Learn how cash gifts from parents, inheritance of Indian property, bank accounts, gold, shares and mutual funds, Form 3520, FBAR/FATCA, PFIC, and Indian documentation all fit together.
Pillar guide
Money from Parents in India: Gifts, Inheritance, Property & Form 3520
Gifts from parents, inheritance from India, money for a US down payment — none of it is taxable income to you, but Form 3520, FBAR/FATCA, PFIC, and the Indian paperwork still matter.
Gift from parents to USA
Money from your parents in India — including help with a US down payment — is generally not taxable income to you in the US. What matters is the Form 3520 threshold, your US-person status, the current LRS/TCS rules on your parents' side, and a clean paper trail.
Open →Inherited Indian property
Inheriting Indian property isn't taxable in the US when you inherit it — tax enters only when you sell, driven by your cost basis. Here's the documentation to gather, the Form 3520 angle, and the path to repatriation.
Open →Inherited mutual funds (PFIC)
Inheriting Indian mutual funds is the one asset where the US tax tail wags the dog. They're generally PFICs — meaning Form 8621 and punitive default tax rules. Here's the trap, in plain English, and what to ask before you sell.
Open →Form 3520 checklist
A step-by-step Form 3520 checklist for gifts and inheritance from India — determine your status, pick the right threshold, aggregate related donors, collect the records, and confirm the deadline and mechanics before you file.
Open →Form 3520 gift checker
Map who gave it, the value, and the asset to a Form 3520, FBAR/FATCA, and PFIC review flag plus documents and CPA/CA questions.
Open →Free Immigrant Wealth Guide
Download Deepak Middha's practical PDF guide on the money traps that hold immigrants back — and how to start building wealth in the U.S.
Calculators & tools
Run the numbers, then check compliance
The decisions that move the most money — capital gains, repatriation, residency timing, transfer costs, and foreign-account reporting.
RNOR / Tax Residency
Find out if you're an NRI, RNOR, or ordinary resident (ROR) for Indian tax — and exactly when your global US income starts becoming taxable in India.
Open →India Property Sale
Estimate capital gains tax and TDS on selling property in India, the 54EC exemption, and how much you can repatriate to the US under the $1M limit.
Open →401(k) Cash Out vs Keep
Moving back to India? Compare cashing out your 401(k) now (after penalty + withholding) against leaving it to compound in USD for retirement.
Open →Remittance & TCS
See the real cost of an India–US transfer: flat fees, hidden exchange-rate margin, and India's TCS on outward remittances — and the net amount that actually arrives.
Open →FCNR vs HYSA
Compare FCNR fixed deposit returns vs a US High-Yield Savings Account or CD after US income tax. See net returns, tax impact, and a 10-year compounding chart.
Open →DTAA / Foreign Tax Credit
Taxed on the same income in both India and the US? Estimate your Foreign Tax Credit, how much double taxation the DTAA avoids, and any US tax still due or India tax to carry over.
Open →DIY Tax Filing Roadmap
Answer a few simple questions and see which U.S. and India tax forms, deadlines, documents, and NRItoUSA tools may apply — FBAR, FATCA, Form 1040, India ITR, TDS refund, Form 10F, and 15CA/15CB. Educational roadmap only.
Open →FBAR / FATCA
Answer a few questions about your Indian accounts to see whether FBAR or FATCA (Form 8938) may need review — with a document checklist and CPA question list. Educational only.
Open →Form 10F Generator
Prepare a clean, printable Form 10F draft to claim India–US DTAA treaty benefits: enter your name, PAN, tax residency period, and foreign tax ID, then copy or download the seven-field declaration. Runs entirely in your browser — educational only.
Open →TDS Refund Checklist
Answer a few questions about your Indian income type, what TDS was deducted, your PAN and DTAA documents, and whether you've filed — to get a tailored document checklist, the likely next review step, and questions for your CA. Educational only, runs entirely in your browser.
Open →15CA / 15CB Checklist
Moving money from India to the USA? Answer a few questions about your source of funds, taxability, TDS, amount, and records to get a tailored document checklist and whether a CA review is strongly recommended. Educational only — it never decides your Form 15CA part or 15CB requirement. Runs entirely in your browser.
Open →Form 3520 Gift Checker
Money or assets from family in India? Answer a few questions — the tax year, the source, the aggregate value, the asset, and where it landed — to get a Form 3520 result with the threshold used, plus FBAR/FATCA and PFIC review flags, the documents to collect, and questions for your CPA and CA. Educational only — it never computes any tax. Runs entirely in your browser.
Open →Tax topics
Cross-border tax, explained
Every India–US tax guide, grouped by the question you're trying to answer.
Tax residency and your first US return
When you become a US tax resident, when India can still tax you, and how to file the first year right.
Am I a US Resident for Tax Purposes? Substantial Presence Test
The 183-day formula isn't what you think. Here's the exact IRS Substantial Presence Test calculation, the exempt-individual rules, and a worked example.
Read guide →Do I Need to Declare Indian Income on My US Tax Return?
Rent, FD interest, capital gains, PPF, dividends — here's exactly which Indian income a US resident must report, what's exempt, and how to avoid penalties.
Read guide →Your First US Tax Return on H-1B: A No-Panic Guide
Resident vs. non-resident, the substantial presence test, India income, and the forms that actually matter.
Read guide →Best and Worst US States for Taxes: An H-1B Take-Home Guide
The same salary nets very different take-home pay by state. Here's how state income tax shifts your paycheck — and the no-tax states tech workers love.
Read guide →DTAA & avoiding double taxation
How the India–US tax treaty, foreign tax credits, and the DTAA keep the same income from being taxed twice.
India-USA Double Taxation: How the DTAA Protects Your Income
Don't pay tax twice on the same rupee. Here's how the India-US treaty and the Foreign Tax Credit work — with a worked example that saves you thousands.
Read guide →Is Your Indian PPF Taxable by the IRS? (US Tax Rules Explained)
PPF interest is tax-free in India — but the US doesn't honor that. Here's how the IRS likely treats your Public Provident Fund and the reporting you owe.
Read guide →Selling Indian Shares & Mutual Funds as a US Resident: The Tax
Selling Indian stocks or mutual funds while in the US? Here's how Indian TDS, US capital gains, and PFIC rules combine — and how to avoid double tax.
Read guide →Selling property, repatriation & inheritance
Capital gains, TDS, the USD 1M repatriation limit, FIRPTA on US homes, and inheriting Indian assets.
Moving Money From an Indian Property Sale to the USA
Sold a flat or inherited property in India? Here's the step-by-step on TDS, the $1M repatriation limit, Forms 15CA/15CB, and moving money to the US.
Read guide →Selling Your US Home as an NRI: FIRPTA Withholding Explained
Sell US property as a nonresident and the buyer must withhold up to 15% of the price. Here's how FIRPTA works and how to get your money back.
Read guide →Inheriting Property or Money in India: The US Tax Rules
Inherited land, gold, or bank accounts in India? Here's how the IRS treats foreign inheritance, the crucial Form 3520, and the step-up basis.
Read guide →FBAR, FATCA & the PFIC trap
Reporting Indian bank accounts, FDs, and mutual funds — and how to catch up cleanly if you missed a year.
FBAR & FATCA Explained: Reporting Indian Accounts to the IRS
Hold bank accounts, FDs, PPF, or mutual funds in India? Here are the exact filing thresholds, deadlines, forms, penalties, and how to fix missed years.
Read guide →Missed Your FBAR? IRS Streamlined Procedures for NRIs Explained
Unreported Indian accounts from past years? The IRS Streamlined Procedures let non-willful filers catch up with little or no penalty. Here's how to fix it.
Read guide →The PFIC Trap: Why Indian Mutual Funds Punish US Taxpayers
Holding Indian mutual funds, ULIPs, or ETFs as a US resident triggers brutal PFIC tax rules and Form 8621. Here's what it costs and how to escape cleanly.
Read guide →NRE vs. NRO Accounts: The Money-Transfer Setup Every NRI Needs
Which account holds your US savings, which holds your India income, and how to move money tax-efficiently.
Read guide →Transfers, gifts & retirement accounts
TCS on remittances, gift-tax rules across borders, and what happens to your 401(k)/IRA when you move back.
India's 20% TCS on Foreign Remittances: What NRIs Must Know
Sending money out of India under the LRS? A 20% TCS can apply above ₹10 lakh. Here's who it hits, the exceptions, and how to claim it back.
Read guide →What Happens to Your 401(k) When You Move Back to India?
Your 401(k) doesn't vanish when you leave the US. Here are your options, the 30% withholding trap, the 10% penalty, and how RNOR status protects you.
Read guide →Can You Transfer a 401(k) to India? NPS, PPF & the Real Answer
There's no direct pipe from a US 401(k) into NPS or PPF. Here's why cross-border retirement transfers don't exist — and the legal workarounds that do.
Read guide →Free 2026 Return-to-India PDF Checklist
Planning your move back to India?
Get the free 2026 Return-to-India Playbook — a complete personal, financial, tax, 401(k), RNOR, property, and repatriation checklist for NRIs.
- What to do 12 months, 6 months, 3 months, and 30 days before moving
- How to think about 401(k), IRA, HSA, brokerage, and U.S. bank accounts
- RNOR, FBAR/FATCA, DTAA, NRE/NRO, India property sale, and remittance checklist
- First 90 days in India setup list
20 chapters. 60+ decision points. 25+ linked calculators. Built for H-1B, L-1, green card, and U.S.-citizen families planning a move back to India.
Written by Deepak Middha, CA, Series 65 — 2026 Edition
Frequently asked questions
What are the tax compliance rules for NRIs in India?
Your India tax obligations depend on residential status, which is set by days present in the April-March financial year: 182 days or more makes you Resident, as does 60 days in the year plus 365 across the previous four. Non-residents are taxed only on India-sourced income such as rent, capital gains, and NRO interest, usually collected through TDS, and may need to file an ITR to reclaim excess TDS.
Do NRIs have to file an income tax return in India?
You must file if your India-sourced income exceeds the basic exemption limit, and you should file whenever TDS was deducted at more than your actual liability — that refund is only recoverable through a return. Filing is also required to carry forward capital losses and is often needed as documentation for repatriation.
What is the TDS rate for NRIs?
TDS on NRI income is deducted at source at rates that vary by income type — NRO interest, rent, and capital gains each carry their own rate, and property sales attract TDS on the sale consideration rather than on the gain. Because the deducted amount frequently exceeds the real liability, a lower-deduction certificate or an ITR refund claim is often worth pursuing.
What is Form 15CA and 15CB used for?
They are the compliance pair for remitting money out of India. Form 15CA is your declaration to the bank about the remittance, and Form 15CB is a chartered accountant's certificate confirming the tax treatment. Which parts apply depends on the amount and whether the income is taxable in India.
Do I need to report Indian bank accounts on my US taxes?
Yes, once thresholds are crossed. FBAR (FinCEN Form 114) is required if all your foreign accounts combined exceeded $10,000 at any point in the year, and FATCA Form 8938 applies from $50,000 year-end or $75,000 peak for a single filer living in the US. NRE, NRO, fixed deposits, PPF, and demat accounts all count toward these tests.
How does the DTAA prevent double taxation for NRIs?
The India-US treaty assigns taxing rights and allows a foreign tax credit, so tax paid in one country generally offsets liability on the same income in the other. In practice most US-resident NRIs claim a US foreign tax credit for Indian tax already deducted, which requires keeping TDS certificates and Indian return documentation.
Deepak Middha, CA, Series 65Founder & Author
Deepak has experience in cross-border finance, tax-aware planning, and immigrant money decisions. View full profile →
Educational content, not personalized tax, legal, immigration, or financial advice. Rules, fees, and processing times change — always verify with the official source before acting.
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