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US Tax Implications & Reporting Requirement – N.D. Savla & Associates
For Non-Resident Indians (NRIs) living in the United States, taxation gets more complex because income earned in India must be disclosed in the US, and sometimes the same income is taxed in both countries. Between IRS filing obligations, FATCA (Foreign Account Tax Compliance Act), and global income reporting, NRIs often struggle to remain compliant. At N.D. Savla & Associates, we provide expert advisory on US tax compliance for NRIs, ensuring that your Indian and US tax obligations are aligned.
Overview
An NRI living in the US may have Indian income sources such as rental income, property sales, dividends, or capital gains. These need to be reported in both India and the US. The India–US Double Taxation Avoidance Agreement (DTAA) helps prevent double taxation, but claiming benefits requires proper documentation and reporting. Non-compliance can attract IRS penalties and scrutiny.
Features
Advisory on IRS reporting for NRIs with Indian income
Assistance with FATCA & CRS compliance for Indian bank accounts
Filing support for IRS Form 1040, Form FBAR (FinCEN 114), and FATCA Form 8938
Guidance on DTAA benefits to avoid double taxation
Tax planning for US-based NRIs investing or selling property in India
Coordination between Indian ITR filing and US tax reporting
Documents Required
Passport & PAN card
US Social Security Number (SSN) or ITIN
US tax return (Form 1040) details
Indian ITR (if already filed)
Indian bank account statements (NRE/NRO/FCNR)
Property sale deeds / rental agreements (if applicable)
Investment statements (mutual funds, shares, bonds)
FATCA declaration from Indian banks
Procedure
Income Review – Identify Indian income sources (rental, capital gains, dividends, interest).
Tax Residency Analysis – Determine applicability of India–US DTAA provisions.
Compliance Mapping – Match Indian ITR requirements with US IRS reporting.
Documentation & Filing – File Indian ITR, US Form 1040, FBAR, and FATCA Form 8938 as required.
DTAA Claim – Apply DTAA credits to avoid double taxation.
Ongoing Advisory – Monitor yearly updates in US and Indian tax rules for NRIs.
Why This Matters
US-based NRIs who ignore FATCA or underreport Indian income risk hefty IRS penalties and legal issues. By working with N.D. Savla & Associates, your US tax reporting requirements for NRIs are handled in sync with Indian compliance, ensuring peace of mind and maximum tax efficiency.
