Question 1

Do you handle both US and India tax obligations?

Accepted Answer

Yes. We provide integrated support for your US tax filing and help structure your income to be tax-efficient in India as well. Our team understands the interplay between both tax systems and ensures you are compliant in the US while minimizing your combined tax burden across both countries.

Question 2

How do you help avoid double taxation on the same income?

Accepted Answer

We apply the US-India Double Taxation Avoidance Agreement (DTAA) provisions and claim Foreign Tax Credits (Form 1116) to ensure the same income is not taxed twice. Depending on the income type — salary, interest, dividends, capital gains, or rental income — different treaty articles and credit mechanisms apply. We evaluate each income stream individually.

Question 3

Is FBAR filing mandatory? What are the penalties for not filing?

Accepted Answer

Yes. If your foreign financial accounts (including bank accounts, FDs, PPF, NRE/NRO accounts in India) exceed $10,000 in aggregate value at any time during the year, you must file FBAR (FinCEN Form 114). Penalties for non-willful violations can reach $16,117 per account per year (inflation-adjusted). Willful violations carry even steeper penalties. We ensure timely and accurate filing.

Question 4

What is FATCA, and how is it different from FBAR?

Accepted Answer

FATCA (Form 8938) reports specified foreign financial assets to the IRS with higher thresholds than FBAR. Single filers in the US: $50,000 at year-end or $75,000 at any time. Married filing jointly: $100,000 at year-end or $150,000 at any time. Filers living abroad have even higher thresholds ($200,000/$300,000 single, $400,000/$600,000 MFJ). FBAR is filed with FinCEN and has a lower $10,000 aggregate threshold. Many NRIs need to file both. We determine your obligations and prepare both forms.

Question 5

I sold property in India. How is it taxed in the US?

Accepted Answer

Property sale gains in India are reportable on your US tax return as well. We calculate the gain using IRS rules (which may differ from Indian capital gains calculations), apply the correct exchange rate, and claim Foreign Tax Credits for any tax paid in India on the same gain. Proper reporting avoids double taxation and IRS scrutiny.

Question 6

Can you help if I haven't filed US taxes for several years?

Accepted Answer

Yes. If you qualify, we can use the IRS Streamlined Filing Compliance Procedures to bring you into compliance without the standard late-filing penalties. This involves filing 3 years of tax returns and 6 years of FBARs, along with a certification statement. We evaluate your eligibility and handle the entire process.

Question 7

I'm returning to India permanently. What are the tax implications?

Accepted Answer

Returning NRIs face several considerations: your tax residency status changes (potentially requiring a dual-status return for the transition year), you may need to close or restructure US investment accounts, and your ongoing FBAR/FATCA obligations may continue if you retain US financial accounts. We create a transition plan to address each of these areas.

Question 8

Can you help with ITIN applications and renewals?

Accepted Answer

Yes. We prepare Form W-7 for ITIN applications and submit it along with your tax return. This is common for spouses of H-1B or L-1 visa holders, dependents, and NRIs who need a US taxpayer identification number. We also handle renewals for expired ITINs to prevent filing delays.

Question 9

What about NRE and NRO account interest — is it taxable in the US?

Accepted Answer

Yes. While NRE account interest is tax-exempt in India, it is fully taxable in the US for US tax residents. NRO account interest is taxable in both countries, but you can claim a Foreign Tax Credit for the Indian TDS deducted. We ensure both types of interest are reported correctly on your US return.

Question 10

Do H-1B and L-1 visa holders have different filing requirements?

Accepted Answer

The filing requirements are generally the same once you meet the Substantial Presence Test and become a US tax resident — you report worldwide income on Form 1040. However, in your first year, you may qualify for dual-status treatment. We evaluate your specific visa timeline and residency status to determine the most beneficial filing approach.

Expat & NRI Tax Services

What's Included

FBAR & FATCA Compliance

Foreign Income Reporting

ITIN Application & Renewal

Foreign Tax Credit, DTAA & India Tax

Why NRIs Trust Us

End-to-End Expat & NRI Tax Services

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