Common problems of Indians with US tax requirements

Common problems of Indians with US tax requirements

http://ift.tt/2uL7w5Z Issues we see for US persons living in India, and Indian people living in the US. We often talk about FBARs, FATCA, Form 8938, but there are many more issues specific to each country The US-Indian Treaty provides little benefit The "Savings Clause" part of the treaty negates the double-taxation prohibition Anything earned in India is subject to US taxation. The foreign income exclusion applies if you are domiciled in India, and you may be entitled to a foreign tax credit for any taxes paid in India.   The NRE/NRO trap Indians not living in India can only have NRE/NRO accounts. The benefit is that these accounts are tax-free in India. If an Indian is also a US person, a NRE/NRO is taxable.  This trap has caused many Indians to fail to disclose their worldwide income Many have had to enter into some sort of offshore disclosure program.   Other issues we see: Treatment of fixed deposits with a term over one year Treatment of Indian life insurance, Indian Mutual Funds, EPFs, PPFs, NRE, NRO accounts, and pension funds HSBC India is on the foreign facilitators list. DEMAT Accounts involved complicated accounting, along with FBAR reporting. Parent & Parent LLP 144 S Main Street Wallingford, CT 06492 (203) 269-6699 http://ift.tt/1RfwK1f infor@irsmedic.com https://youtu.be/MqACHY-Fvro IRS Medic