Form 3520 India Gift & Inheritance Checker

No. This is an educational checker, not a calculator — it never computes any tax, penalty, or threshold figure. It maps a few situational answers to a Form 3520, FBAR/FATCA, and PFIC review flag, the documents to collect, and questions for your CPA and CA. Your actual obligations depend on facts and current-year rules only a cross-border professional can confirm.

Generally no — receiving a gift or inheritance from a foreign person is not taxable income to you in the US. The catch is reporting: large foreign gifts and bequests can require Form 3520 (a disclosure, not a tax), and the income the assets later earn is taxable. The checker flags the reporting side.

Gifts and bequests from a nonresident alien individual or a foreign estate are reported on Form 3520 when the year's total exceeds US $100,000. Gifts from a foreign corporation or partnership use a separate, much lower threshold the IRS adjusts annually for inflation. The tests are on the aggregate, and related donors can be combined.

Because it drives the other US filings. Indian mutual funds are generally PFICs (possible Form 8621 with punitive default rules), Indian financial accounts feed FBAR and FATCA, and property or shares raise cost-basis questions for a future sale. The checker raises the relevant flags based on what you received.

For Form 3520, not much — that test is about the gift itself. But money or securities sitting in an Indian account become FBAR/FATCA items once they're yours, and moving them to the US later needs repatriation paperwork (Form 15CA/15CB). The checker adds those steps when relevant.

No. Form 3520 is an information return — a disclosure. There is generally no US tax on receiving a foreign gift or inheritance. The risk is the penalty for failing to file or filing late, which can be a percentage of the unreported amount, so the filing itself is what matters.