India-U.S. Tax Issues: FATCA/FBAR Reporting Compliances, NRE/NRO Account Requirements, Tax Treaty Benefits, Benefit of Foreign Tax Credits and the Exclusions

Description

The complexities of filing individual income tax returns for U.S. persons (residents and green card holders and citizens) who also file Indian returns are many. Since the U.S. taxes worldwide income and not all earnings that are tax-exempt in India are tax-exempt in the U.S. (NRO accounts, for example), earnings from these additional accounts must be identified and included on the individual taxpayer's 1040, Schedule B. Understanding the tax treatment of investment accounts unique to India is critical for practitioners preparing these returns for clients.

Our panel will review details of Indian income tax returns, including the types of income taxed, relative tax rates which helps the tax professional understand the return in entirety and will be able to maximize the foreign tax credit for double-taxed income. They will address additional challenges relative to reconciling the types of income taxed and tax withheld at source given that the U.S. follows calendar year and India follows the assessment year April 1 to March 31.

Listen as our panel fleshes out taxable income, deductions, credits, and accounts required to meet U.S. reporting obligations for Forms 8938 and the FBAR, and as well as outlines ways to minimize taxes paid on Form 1040 by taxpayers filing returns in both the United States and India.