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.
Annual calendar
Your NRI tax year, both sides
Your two tax years do not line up — and that is where mistakes start
India's financial year runs 1 April to 31 March. The US tax year runs 1 January to 31 December. So Indian income earned between January and March sits in one Indian financial year but a different US tax year. When you claim a US foreign tax credit for Indian tax paid, or an Indian credit for US tax, you are matching income across two calendars that are three months out of step. Most cross-border credit errors trace back to this and nothing else.
Worked example: NRO interest credited in February falls in the Indian financial year that ends the following 31 March, but in the US tax year that ended the previous 31 December. The Indian tax on it may not even be finally determined by the time your US return is due — which is why the extension to 15 October exists and why experienced cross-border filers use it by default rather than as a fallback.
Financial year → Assessment year → due date
India labels a return by its assessment year, which is always the year after the financial year it reports. So 31 July 2026 is the due date for FY 2025-26 (AY 2026-27) — not for the year that began that April.
| Financial year | Period | Assessment year | ITR due (non-audit) | Belated / revised by |
|---|---|---|---|---|
| FY 2025-26 | 1 Apr 2025 – 31 Mar 2026 | AY 2026-27 | 31 July 2026 | 31 Dec 2026 |
| FY 2026-27 | 1 Apr 2026 – 31 Mar 2027 | AY 2027-28 | 31 July 2027 | 31 Dec 2027 |
- 🇺🇸 USAJanuary 15
Q4 estimated tax payment
Final estimated-tax instalment (Form 1040-ES) for the tax year that just ended. Relevant if you have India rental income, capital gains, or other income without US withholding.
Applies to: US tax year that ended the previous 31 December
- 🇮🇳 IndiaMarch 15
Final advance tax instalment
Fourth and final advance-tax instalment for the Indian financial year ending 31 March. Advance tax applies once your India tax liability crosses the statutory threshold after TDS.
Applies to: Indian FY ending 31 March of this same year
- 🇮🇳 IndiaMarch 31
Indian financial year endsDon't miss
The Indian tax year closes. Everything after this date is reported in the next financial year. This is also the cut-off for several year-end tax-saving actions on the India side.
Applies to: Closes the FY that began the previous 1 April
- 🇺🇸 USAApril 15
Form 1040 due · FBAR due · Q1 estimated taxDon't miss
US individual return due, along with Form 8938 if you meet the FATCA threshold. FBAR (FinCEN Form 114) is technically due today but carries an automatic extension to 15 October with no request needed. Q1 estimated tax for the current year is also due.
Applies to: US tax year that ended the previous 31 December (Q1 estimate is for the current year)
- 🇺🇸 USAJune 15
Automatic extension for filers abroad · Q2 estimated tax
If you live outside the US, you get an automatic two-month extension to file — but interest still runs on unpaid tax from 15 April. Q2 estimated tax is also due.
Applies to: US tax year that ended the previous 31 December
- 🇮🇳 IndiaJune 15
First advance tax instalment
First advance-tax instalment for the Indian financial year that began on 1 April.
Applies to: Indian FY that began this 1 April
- 🇮🇳 IndiaJuly 31
ITR due date — non-audit casesDon't miss
Statutory due date for individuals whose accounts do not require audit, which covers most NRIs with salary, interest, rental, or capital-gains income. Filing an ITR is how you reclaim excess TDS on NRO interest, rent, or a property sale — a refund you simply forfeit if you never file.
Applies to: Indian FY that ended the previous 31 March — i.e. AY = this calendar year
- 🇮🇳 IndiaSeptember 15
Second advance tax instalment
Second advance-tax instalment for the current Indian financial year.
Applies to: Indian FY that began this 1 April
- 🇺🇸 USASeptember 15
Q3 estimated tax payment
Third estimated-tax instalment for the current US tax year.
Applies to: Current US tax year
- 🇺🇸 USAOctober 15
Extended Form 1040 deadline · FBAR final deadlineDon't miss
Final date for a US return filed under a Form 4868 extension, and the end of the FBAR automatic extension. For NRIs this is often the practical filing date rather than April, because Indian tax figures for the overlapping period are usually settled by now.
Applies to: US tax year that ended the previous 31 December
- 🇮🇳 IndiaOctober 31
ITR due date — audit cases
Due date where a tax audit applies, typically business or professional income above the audit thresholds. The audit report itself is due earlier. Most salaried and investment-income NRIs are not in this bucket.
Applies to: Indian FY that ended the previous 31 March — i.e. AY = this calendar year
- 🇮🇳 IndiaDecember 15
Third advance tax instalment
Third advance-tax instalment for the current Indian financial year.
Applies to: Indian FY that began this 1 April
- 🇮🇳 IndiaDecember 31
Belated and revised return deadlineDon't miss
Last date to file a belated return, or revise a return already filed, for the relevant assessment year. Missing 31 July is recoverable here — at the cost of a late fee and the loss of some carry-forward benefits.
Applies to: Indian FY that ended 15 months earlier — i.e. AY = this calendar year
- 🇺🇸 USADecember 31
US tax year ends
The US tax year closes. Actions that affect your US return — charitable gifts, loss harvesting, retirement contributions with a year-end deadline — must be completed by today.
Applies to: Closes the US tax year that began this 1 January
Are you Resident, Non-Resident, or RNOR?
India decides your residential status by counting days in the April–March financial year. Three tests matter, and the third one — added in 2020 — is the one most often missed.
182-day test
Present in India for 182 days or more in the financial year → Resident.
The headline rule, and the only one many NRIs know about.
60 + 365 test
Present 60 days or more in the year AND 365 days or more across the preceding four years → Resident.
For an Indian citizen leaving India for employment abroad, or visiting India, the 60 days is relaxed to 182 — which is why most NRIs on short visits stay non-resident.
120-day test (₹15 lakh trigger)
An Indian citizen or person of Indian origin visiting India whose India-sourced income exceeds ₹15 lakh in the year becomes Resident at 120 days instead of 182.
Applies only above the ₹15 lakh India-income threshold. Someone crossing it is treated as Resident but Not Ordinarily Resident (RNOR), so foreign income generally stays outside India's net.
RNOR — the planning window. RNOR is the useful middle status: you are Resident for day-count purposes but your foreign income is generally not taxable in India. Returning NRIs often qualify for RNOR for two to three years after moving back, which is the window in which to plan repatriation and asset sales.
NRE vs NRO: taxability on both sides
| Aspect | NRE account | NRO account |
|---|---|---|
| Interest — India tax | Exempt under Section 10(4)(ii) while you remain a non-resident | Fully taxable; TDS deducted at source |
| Interest — US tax | Fully taxable on your US return — India's exemption does not travel | Fully taxable on your US return |
| Foreign tax credit | None available — no Indian tax was paid, so there is nothing to credit | Indian TDS can generally support a Form 1116 credit |
| Repatriation | Freely repatriable, principal and interest | Up to USD 1 million per financial year, subject to documentation |
| FBAR / FATCA | Counts toward both thresholds | Counts toward both thresholds |
The expensive trap: The trap that costs the most: NRE interest is tax-free in India, so nothing is withheld and no Indian tax document is generated — but it is still fully taxable on your US return, and there is no foreign tax credit to offset it because no Indian tax was paid. Many NRIs under-report exactly this income because nothing arrived in the post to remind them.
Claiming the DTAA credit: Form 67 and Form 1116
Claiming credit for tax paid to the other country is what stops the same income being taxed twice under the India–US DTAA. Each side has its own form, and each has a filing rule that is easy to miss.
India side
Form 67
Claims credit in India for tax paid in the US.
Filing rule: Must be furnished on or before the end of the assessment year. Rule 128 was relaxed in 2022 — it no longer has to be filed by the ITR due date — but it does have to be filed, and it has to be filed before the ITR it supports is processed to be of any use. Where the foreign income is included via an updated return under section 139(8A), Form 67 is due by the date the updated return is filed.
Common trap: Filing the ITR and forgetting Form 67 entirely. The credit is not automatic and will not be inferred from your return.
US side
Form 1116
Claims credit on the US return for income tax paid to India.
Filing rule: Filed with your Form 1040. Credits are computed per income category, and unused credit can generally be carried back one year and forward ten.
Common trap: Claiming credit for Indian TDS that was later refunded to you. The credit is for tax finally borne, not tax initially withheld — which is another reason to know your Indian refund position before filing in the US.
Because the two tax years are three months out of step, the Indian tax on income in your US tax year is often not final by 15 April. Filing a US extension to 15 October so the Indian position is settled first is standard practice for cross-border filers, not a sign of a problem.
Compiled August 17, 2026. These are the statutory dates. CBDT extends Indian filing deadlines in most years — sometimes more than once — and the IRS grants disaster-area and other extensions, so confirm the operative date for your year with the Income Tax Department and the IRS before you rely on it. Advance-tax and audit obligations depend on your facts. Educational information only, not tax advice.
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 →USD/INR Forecast
Four scenario paths to 2028, twenty years of history, and the one number that decides it: how fast the rupee must fall before waiting beats sending today.
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. Your options, the 30% withholding trap, Form W-8BEN, DTAA Article 20, 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.
What are the India and US tax deadlines for NRIs?
On the India side, the statutory ITR due date is July 31 for individuals not subject to audit, with belated and revised returns allowed until December 31, and advance tax instalments on June 15, September 15, December 15 and March 15. On the US side, Form 1040 and FBAR are due April 15, filers living abroad get an automatic extension to June 15, and the extended deadline for both the return and FBAR is October 15. CBDT extends Indian deadlines in most years, so confirm the operative date before you rely on it.
Why don't the Indian and US tax years line up?
India's financial year runs April 1 to March 31 while the US tax year runs January 1 to December 31, so the two are three months out of step. Indian income earned between January and March falls in one Indian financial year but a different US tax year. This offset is the most common source of foreign tax credit errors, because you are matching income and tax across two different calendars.
When must Form 67 be filed to claim a foreign tax credit in India?
Form 67 must be furnished on or before the end of the relevant assessment year. Rule 128 was relaxed in 2022 so it no longer has to be filed by the ITR due date, but it still has to be filed — the credit is not automatic and will not be inferred from your return. On the US side, the equivalent claim is made on Form 1116 filed with your Form 1040.
Should NRIs file a US tax extension to October 15?
It is common practice rather than a sign of trouble. Because the Indian financial year ends March 31, the Indian tax position on income falling in your US tax year is often not final by April 15. Extending to October 15 lets you claim the foreign tax credit on Form 1116 based on tax actually borne rather than on TDS that might later be refunded. Note that an extension to file is not an extension to pay — interest runs on unpaid tax from April 15.
Deepak Middha, CA, Series 65Founder & Author
Deepak has experience in cross-border finance, tax-aware planning, and immigrant money decisions. View full profile →
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