374 Responses to FATCA / CRS Declaration: Requirement, Importance and Detailed Analysis

  1. brij says:

    Hello Jigar sir,

    we r us citizen and leaving in india (OCI) since last 4 years. my wife works from home, same company she was working in usa on usa server. do we have to file any tax return in INDIA? we have no income in INDIA. her income deposit on her bank in usa.
    we have NRE and NRO account in INDIA . we just transfer as per our expanse in india.
    we have 8,00,000 on NRE /NRO wife. 400000 in mine NRE /NRO acc.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you are living in India since last 4 years, you are an Indian resident for income tax purpose and all your and her global income becomes taxable in India. Also, you are not allowed to have NRO/NRE account but can only maintain resident accounts. Thanks.

  2. mahesh patel says:

    i wan to invest mutual fund with my wife name and my wife is house wife already kyc update and I selected income slab yearly below 1 lakh so what is occupation ! I will put house wife or other and also income slab !! i alredy invest with my wife name for mutulfund but problem is he doing house wife and income slab ! which i selected please guide .
    i have income for farming at my village and also i am nre in Saudi arebia temporary basis so alredy start mutulfund in my wife name status is induvusal so i put house wife !or other ! or agriculture ! please guide me

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      In India, you and your wife are separate persons for taxation and for investments. Any transfer of asset to spouse would be considered of your own and any income would be clubbed to your income as per Indian Income Tax Act. My suggestion would be to invest in your name only. Also, an NRI is not allowed to have an agricultural land (farm land). However, if you owned the property before you became an NRI, you may continue holding the same. Thanks.

  3. nitin says:

    Hi Jigar,

    I am in an NRI status from past 10 months and realized it late about the FATCA requirements. I have a demat account in ICICI direct which mainly has mutual funds in which I had done SIP’s from past 7 years. My total value of funds is around 52 lacs INR. Also I have the ICICI savings account linked to it. I want to convert them to NRO but then the linked demat account will get deactivated.

    Earlier I thought of the option to deactivate it and keep it till I return back and pay notional gains tax in US? However, I heard NRI cannot hold resident demat account and at the moment I cannot convert to NRI demat as it needs physical presence in India.

    I want to comply, so would it would be prudent to sell all the mutual funds, transfer funds to my savings account and then convert it to NRO? This would hamper my long term investments though. Also are there any legal considerations in doing so?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. There is no need to sell any MF or shares or anything.
      2. You just would need to convert your resident and Demat account to NRO. As NRIs can only invest under PIS – Portfolio Investment Scheme of RBI, you would also need to open NRO-PIS account. Your NRO savings will be linked with NRO- PIS account, which will be further linked with your NRO-Demat account. You won’t lose any shares or MF. You may have to open few accounts and sign at multiple places. Thanks.

      • nitin says:

        Hi Jigar,

        Thanks a ton for the reply. But when I checked with ICICIdirect they said I have to be physically present in India to create a new account. And as a NRI, I should not hold the resident demat account. I don’t plan to visit India until next year end so its a risk to keep the resident demat account open, isn’t it? Also if I just convert the linked savings account to NRO, they said they will disable any activities in the resident demat.

        I have one more query, I am doing a married filing for my tax returns here my total value of foreign asserts in under $100000, so do I need to show the assets in Form 8938. In my last year tax returns I filed only the FBAR declaring all my assets.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. Contact another broker who can open your NRO-Demat account. You may have to go to your bank or may be Indian Embassy for signature and may have to incur cost but can be done.
          2. While you may not need to file 8938, you would report it in FBAR as FBAR limit is $10,000. Thanks.

  4. Guru says:

    Hi Jigar,

    Greetings!!
    I am on H1B visa in USA , I am in US from last year(May2016). So I am a NRI. I am a non Resident Alien in USA as I am not greencard holder or citizen. I hold savings account in India and not converted to NRE and do not have NRI account. I filed tax returns in India for last year and also filed tax returns in USA.
    - Should I convert all my savings account to NRE? Although I use them only for transfer of money to pay the Insurance or Credit card bills.
    - In FATCA declaration what should be Country of Residence for Tax Purposes?
    Should it be USA or India?

    Regards
    Guru

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. While you are a non-resident alien, you are a US resident for tax purposes.
      2. As you are an NRI, you are not allowed to have a resident account. Also, you may not convert resident to NRE. The resident account can only be converted into NRO account.
      3. Your country of residence is USA as you file 1040 and not 1040NR. Thanks.

  5. Ankit says:

    Hi,

    I am an Australia Citizen, have been living in Australia since 2010. I have few NRE, NRO FD accounts in India which were opened in 2008 when I was in UK for a short term assignment.
    Money in these accounts is not black money. Its my hard earned money from indian salary, UK salary etc. I have been filing return in india and Australia every year.
    The only mistake i have done is that i didnt declare my indian income in Australia.
    - If i declare my income in Australia now, will i need to pay any penalty?
    - I assume Australia doesnt support double taxation?
    - some of the money was actually transferred from my Australia account to indian NRI account.
    - some from UK account (when i was in UK for short term) to indian NRI account
    - if i gift all my money to my parents, will that be ok?

    • Ankit says:

      Also all my NRI/NRO bank accounts in india are linked with PAN card. Bank also have my overseas address and contact number but NOT TFN number
      if i close all the accounts now in india now, what are the chances that my indian income will be reported in australia?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. I think in Australia, there is no requirement of declaration of account but only income.
      2. Australia and India do have DTAA – Double Tax Avoidance Agreement so you won’t have to pay tax twice.
      3. It is okay to transfer money from your AU account or UK account The key is that the income (interest or capital gain) needs to be declared.
      4. Yes, you may give the gift to your parents. However, as you have an NRE/NRE account the bank would have details of your Australian details.
      5. The new KYC procedures includes FATCA/CRS declaration and it includes requiring your tax ID in country of residence i.e. TFN.
      6. Please contact us to invest in such a way that no tax is to be paid in AU. Thanks.

      • Ankit says:

        Thanks Jigar for such a quick reply.
        Can you share you email id so i can contact you directly. I would need to discuss some investment options in india. Happy to pay your fees.
        Thanks

      • Ankit says:

        Yes bank has my Australian Details (name, address, contact details but not TFN number). If i gift my money to my parents and close accounts now, can they still track it? and i still need to pay penalty?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          The effective data has been Jan 1, 2016 so they have all the info. You may do so but there always be the risk. Thanks.

  6. Manoj Giridhar says:

    My son is on F1 visa in USA , he has completed MS and now working on OTP. As he was in US during last year he is NRI. But as he does not have H1B visa, he is Non resident alien for tax purpose in US. What will be his county of residence in FATCA declaration?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You are right that your son is not a resident of India and also not a resident or USA. I think it will be difficult for bank to understand. However, you would need to make them understand that it is possible for someone to be a resident of no country. Thanks.

  7. Stuti says:

    Thank you for the valuable insight.

    I have a query regarding the residential status. Please confirm whether RNOR in India shall be considered as a resident for FATCA purposes. I am US passport holder working in India since June 2016.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You are resident of both India (stay more than 182 days) and USA (US Citizen). Thanks.

  8. Prerna says:

    Hi,

    My Husband is a Indian Citizen but working in USA since 2012. My Husband has a savings bank account in India and we have not declared his NRI status. He is maintaining the account as resident savings account. We are filing the normal IT returns in India though as Individual. We also file income tax in the USA but do not explicitly mention the PAN card details and Indian income. Please advise if it is necessary to declare the NRI status for the accounts in India and if we keep them as resident savings account do we attract any penalty or any breach under FATCA/ CRS.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      If the amount is not material (< $10000), please withdraw and use it for personal purpose (or even gift to your family) and close the account as you may not have any liability to report in FBAR or FATCA. This will save you from any complications. If material (>$50,000), you may want to take professional help for voluntary disclosure program – Streamlined Compliance (assuming un-intentional) or OVDP (intentional). If between $10,000 – $50,000, take your call. Thanks.

  9. ARSHAD says:

    Hi Mr.Jigar
    I am working in KSA and yearly visit India for vacation for 30-40 days.
    here we are not paying direct Income tax to government but there are taxes like Dependent fees, Iqama fees, Exit reentry etc. so what should i fill in the form pasted below? Kindly advise. in advance thanks for your valuable advise.

    Date:

    To,
    The Manager,
    HDFC Bank Ltd.,
    ______________________, Branch

    Subject – Reasonable justification/ Curing documentation for tax residency for mismatch identified in FATCA-CRS self-certification provided for customer ID______________

    Dear Sir/Madam,

    Further to FATCA-CRS self-certification form provided to the Bank on ____________, I provide the below details.
    (a) I hereby declare that I am currently residing in ______________________________________ (country name) and

    I confirm that I am a tax resident of ______________________________________* as provided in FATCA-CRS self-certification form and provide reason and additional documents (to be filled if country of residence & country of tax residence are different) as mentioned in $Note1 below, along with this form
    (*Please mention name of all countries where you are tax resident)

    OR

    (b) My tax residence has changed with effective from _______ (mention year of change) and I wish to submit a fresh FATCA –CRS self certification form – enclosed herewith.

    $Note1
    Reason/ justification (along with documentary proof in the form of VISA etc.) to establish/ justify country of tax residency being different from country of documented residence (address or contact number)
    • Student (Student Visa)
    • Diplomat (Diplomatic Visa)
    • Mariner/ Sea fearer (Continuous Discharge Certificate (CDC))
    • Temporary visit (Temporary work visa, Teacher, Tourist or other VISA)
    • Athlete or Artist or Professional (Appropriate VISA)
    • Recently shifted residence (Appropriate VISA)
    • Not qualifying as tax resident as not meeting requisite no. of days’ stay (Appropriate VISA)
    • Other , please specify with Appropriate VISA _________________
    In case of U.S. persons, where Nationality or Country of Birth is U.S. but tax residency is of other country, the following documents are provided:
    • Non-US passport or any non-US government issued document evidencing nationality or citizenship; AND
    • Certified Copy of Certificate of loss of US Nationality/ Reasonable explanation for not obtaining such certificate

    Certification: I/We have understood the information requirements of this Form as per the CBDT notified Rules 114F to 114H and hereby confirm that the information provided by me/us on this Form is true, correct, and complete. I/We understand that my personal details as provided /available in the bank records will be used for CBDT reporting / Central KYC Registry. I hereby consent to receiving information from Central KYC Registry through SMS / Email.

    As provided in the FATCA-CRS self-certification form, I/We will inform the Bank within 30 days should there be any changes in details provided.

    In the event of any mismatch in details and sufficient curing documents not provided by me in a timely, I/We understand that the Bank may be constrained to report information relating to my accounts to tax authorities.

    Signature of the account holder

    Date: ___ / ____ / ______ Place: ___________________

    • ARSHAD says:

      Dear Mr. Jigar
      Kindly feedback for my concern.
      Thanks

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        1. Thank you for your comment.
        2. I noticed that this comment was posted just next day of your original comment. I request you to please have patience and give me some more time. This is a voluntary thing that I do and may not reply immediately. While I try to reply within a week, due to other priorities, it may take few more days.
        4. If you had taken some time to review other comments or just search Iqama, you would have found your answer as I have mentioned on several replies Iqama to be used as tax ID. However, you chose to not spend time but to ask. I am okay with that but request to give more time.
        5. Anyway, in urgency, please contact us using the details at http://nareshco.com/blog/?page_id=192.
        Again, I thank you for visiting our blog and posting the comment. Best regards.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You are a tax resident of KSA.
      2. Please give your Iqama number as your tax ID. Thanks.

  10. Jiten says:

    Hi,
    I am staying in qatar
    While filling FATCA/CRS form.
    Here there is no tax. Kindly suggest what shall i write in below questions.
    1) Country of jurisdiction residence?
    2) Your tax resident other than India?
    3) TIN number?
    Regards,
    Jiten

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Qatar
      2. Yes
      3. Your Iqama or resident card number. Thanks.

      • Jiten says:

        Thanks …..

      • Sarfraz says:

        Dear Patel Sir,

        I got FATCA-CRS form from HDFC bank, now i working in abu dhabi as employment visa. Please help me to filled form as below:

        1) currently residing in ……………?
        2) I confirm that I am a tax resident of ……………?

        Plz.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. As you are living in Abu Dhabi, your country of residence would be UAE.
          2. You may give your Iqama or resident card ID as your taxpayer ID. Thanks.

  11. Ali says:

    Good Morning,

    My birth country & nationality is India. I’m an NRI working in Qatar. I tried to submit CRS for my NRE account in India but got confused while selecting “Country of residence for tax purposes”. What should I select “India” and provide PAN details or “Qatar” and provide Qatar ID?

    Thank you for advice & support.

    Regards
    Ali

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you are residing in Qatar, your country of residence is Qatar. Please provide your Qatar ID – resident card or Iqama number. Thanks.

  12. Sandeep says:

    Hi sir,

    I am NRI and still investing through residential Demat & trading account now If i open PIS-NRI a/c then what can be done with my exting shares ? Do i need to sell all shares and the open PIS-NRI a/c? is there implication of using residential Demat & trading account ? how to do it the right way now without sell exting share ?

    Thanks
    Sandeep

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      There is no need to close the account. You may transfer the existing Demat account to NRO-PIS account. Investing using resident Demat account is against the FEMA laws and may be penalised. Please contact your bank and broker where you have bank and demat account and inform them of your NRI status so your account can be regularized (invest only through PIS). Thanks.

  13. Harry says:

    Thanks for posting this, I have one question:

    I live in Canada as PR and will be a citizen in few years, I have few policies (worth 20-25 lakhs) in India (My home country). My question is do I need to fill FATCA form and if I do what would be tax deduction ?
    If I don’t fill then what would be consequences ?

    And once my policy get matured, will it attract more taxes because I will be Canadian citizen then ?

    Thanks in advance.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA is not for tax deduction but to know the country of residence of the account owner and sharing the information with the respective country for increased tax compliance. As an NRI, you may have increased tax rate for deduction however, the tax laws are the same for residents and NRIs. If the life insurance is not taxable in India for resident, it is also not taxable for NRIs and there won’t be any tax deduction. If the amount is taxable, TDS would be deducted. If TDS is deducted at higher rate, you can file your tax return and claim the refund from the income tax. Thanks.

  14. BRIAN D says:

    My brother is a Canadian citizen and has an account with my mother in India since 1981 in his student days. He does not have PAN or aadhaar.

    Doe she have to fill in the FATCA form ? BOB says he has to but most bank officials do not know full details. he has only one LIC policy due next year

    Pls advise

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes, FATCA/CRS is now part of the revised KYC procedures and is required. There is no requirement to have PAN provided you are okay with bank deducting tax and not claiming refund. Aadhar is only for residents and NRIs are not legally allowed to have Aadhar. Thanks.

  15. Rajeev Kumar says:

    Hi,
    I am working in Thailand since this year.I hold indian saving account in India as i have been working in India before.But eventually i don’t have NRE account in India.I wan’t to open one NRE account when i will be on vacation in India.Can i keep both normal saving accounts and NRE account in India.Please suggest.Please note that i invest in few funds which was my part of tax saving when i was working in India.
    Best Regards,
    Rajeev

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Normal savings account is for residents. NRE account is for non-resident. You can not be both resident and non-resident at the same time so you can’t have both. If you tell the bank where you have a resident account that now you are an NRI, bank will change your residential status to NRI and the normal savings account to NRO. Thanks.

  16. Rajendra says:

    Hello mr patel , thank u very much for ur valuable information on FATCA.
    I hv a question
    I m a resident of a African country , I m a NRI and holing a OCI CARD,
    I hv a NRE account in ICICI BANK . And I m having FD’S of 20 lakh. I m also having 2 RD account for 10000/ rs / month each .

    recnently I hv been asked to submit FATCA / CRS. Which I want to do . But as I inform the bank that I reside in this country they ask for TIN no of the country, is it mandatory .

    Second query is – the interest which I get yearly on NRE FD ‘s , do I have to declare in my Tex return of the country where I m a residence ?
    Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Yes. The Tax ID number is mandatory.
      2. The taxation would depend on the country of your residence whether it taxes global income or only the income generated in the country. Thanks.

  17. Vicky says:

    Hi,

    I am OCI holder and passport holder in canada and have NRO single acocunt in India. I have SBKIT joint account with my mother in India.

    I received FATCA CRS update form Icici which I have to fill. Both the accounts are lnked to one user id.

    Do My monthe need to fill FATCA form as ICICI said. She is Indian National and never been out of India.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes, everyone needs to fill the FATCA/CRS. She will say she is an Indian resident and Indian citizen. Thanks.

  18. Rahul Joshi says:

    Hi Jigar,

    Thanks for the information on this blog. I have a query regarding my Country of Residence. I am an Indian citizen deputed in UK on Work visa by my Indian employer. I’ve come to UK on 3rd June 2017. I’ve been to UK before and last time I left UK 17th October 2014 before returning June this year.

    I have a life Insurance policy and policy provider has asked to fill FATCA/CRS declaration. What would be my Country of residence at the moment if I fill the form? Would it be UK or India?

    Appreciate your help in advance.

    Thanks,
    Rahul

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The FATCA/CRS asks whether you are a tax resident of any country other than India. There is no either or. You may be tax resident of more than 1 country. The question you need to be asking is whether you are also a tax resident of UK? If yes, you would include UK as country of residence. Thanks.

  19. Tejas Fernandes says:

    Good day,
    I’m an Indian seafarers and I maintain non resident status (ie I’m employed for more than 182 days outside India in a foreign company)
    I have a few investment as Nre FD.
    Kindly advice if I need to submit FATCA.
    Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA is now part of a revised KYC – Know Your client/customer and is mandatory for all. Yes, you would need to submit FATCA. However, you may not be a tax resident of any country. Thanks.

  20. sudhir says:

    Hello sir,
    Thanks for this very useful blog. I am a resident of Australia for Tax purposes. I have the following questions. I hold an SBI NRE A/c and HDFC NRE A/C. Both banks have asked me to fill CRS form with 20th Aug as deadline. The HDFC A/C has a very meagre amount (15K Rs) and hardly any earnings in the form of interest so I had no hesitation in filling the CRS Form and already done it. However with SBI Bank I have substantial investments in FDs and as a result I have been regularly receiving interest income in the order of say 1.5Lacs for every calendar year since 2013. This has not been declared in my Australian Tax return. My question to you is
    1. Since what period will the bank report to the ITdept? Do I need to worry about the income earned in 2014 and 2015.? Will it be say from 1July2014 to 30June2015 and every subsequent year?
    2. Can they go back and report past years (say 2013)
    3. Can I get away by closing the SBI account now and transferring all the balance to say my parents residents account. Obviously they may get scrutiny from Indian Income tax dept. But as that will be gift from their son it will be non –taxable for them.
    4. As soon as I heard about the CRS, I have started closing my SBI FDs and systematically transferring money to my parents account. So I have meagre earnings for 2017. Now if I close the SBI A/c can I get away for year 2014, 2015 and 2016.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. For Australia, the reporting would be from 1/1/2016 i.e. calendar year 2016.
      2. I would recommend to contact your Australian accountant/CPA for how to report your Indian Income.
      3. Gift from child is not taxable in India. Also, Rs. 15-20L may not be a big gift. However, it needs to be a genuine gift and not in a nature of loan. Please contact your CA.
      4. There is no guarantee and little chance but if your account can be linked with PAN / TFN, the data will be reported. Thanks.

      • Australian Indian says:

        Hi Jigar,

        Thanks for sharing all this knowledge with us. It is much appreciated.

        With regards to #1, is it correct to say that for Australia – all Indian income from calendar year 1/1/2016 will be reported to the Australian Tax Office.

        What dictates which year will be used for reporting purpose? Has there been any legal agreement which stipulates this obligation of reporting income from 1/1/2016?

        Thanks.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. Yes.
          2. The signed MCAA agreement requires countries to share the data. India has signed the agreement and agreed to share the data from 2016 and onwards. Thanks.

  21. Rahul says:

    Hi Jigar,

    I am an Indian citizen and have moved to UK in June 2017 on work visa. I intend to live in UK for around and year i.e. till Mid 2018.

    Would I be a UK resident or an Indian resident for the purpose of FATCA/CRS declaration if I am expected to certify now.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS asks if you are also a tax resident of any country other than India. It is okay if you are also a tax resident of India. In short, if you are a tax resident of UK, you would include UK in FATCA/CRS form. Thanks.

  22. Anup says:

    Hi,

    I am currently in the US from 2015 and paying tax in the US.
    I have an NRE account in SBI where I transfer money for my family (wife and kids).

    I received the FATCA letter from SBI.

    The letter is a bit confusing.

    I, the undersigned hereby declare and certify as under:
    I/We am/are a resident for tax purposes in India only and not a resident of any country/territory (ies) outside India for tax purposes.

    AND
    I/We enclose copies of the following ((Strike off whichever is not applicable)

    i) a certificate of residence issued by an authorized government body (including a government agency or a municipality) of the country or territory of which I/we am/are a resident for tax purposes;
    OR
    (ii) valid identification indicating my/our name issued by an authorized government body (including a government agency or a municipality) which is used for identification purposes for being resident of the jurisdiction for tax purposes.
    OR
    I/We confirm that the Other Indicia found to have been associated with my/our account consequent to due diligence procedure undertaken by the Bank is correct and I/we further confirm that I/we am/are a tax resident of the following country(ies) or territory(ies) outside India other than U.S. and therefore my/our account is an Other Reportable Account.

    Which one should I select and declare?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you are in USA since 2015, you are a tax resident of USA. So, include USA as a country of residence and provide your SSN. Thanks.

  23. siril says:

    Sir, Thanks for the detailed information. I was in US for about 9 months of last year on H1B and i returned and joined a company here in Bangalore towards the end of last year. I moved all my savings from US to an NRE account in SBI. I was told that this amount since already tax deducted from US is not taxable and also the FD interest will be taxed at 30% (that’s what i remember them saying but I might be wrong). I didn’t disclose this account in my tax filing. (Since I thought it wasn’t part of the earnings here). Now I have received request for this CRS. I am kind of worried. I have only received < 5000 as interest for last financial year. I was planning to convert this account into a domestic one as soon as i travel to my hometown. Should i refile my returns showing this NRE account ?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Bank account and interest needs to be disclosed, even if exempt. If exempt, the income would be included in the return as income exempt from tax.
      2. On return to India, you would be an Indian resident for FEMA and you are not allowed to maintain NRE account on your return to India. Also, the interest income on NRE would become taxable from the day of your return to India.
      3. As your stay was only for a limited time, you would need to check the residential status. Depending on your dates, you may be an Ordinary resident (if more than 182 days) or Not Ordinary Resident in India and would be taxed on your salary income accordingly. I suggest you to contact your CA. Thanks.

  24. RAJ SHARMA says:

    Dear sir

    I am a NRI living in Abudhabi .My wife also have status of NRI & she is house wife & have not any earning income , i am interested in mutual fund investment by her name . my salary is not taxable here.I had done KYC for her. When I try to buy funds online ,Funds house asking for FATCA. I try to fill FATCA online but I am confuse. Please help me to fill FATCA online.Plase let me know what to fill in the following columns.
    1)Source of Wealth ?.2) Are you resident of any country other then India?.3) Tax identification no(TIN) ?4) Type of TIN.
    Kindly help me to fill these column
    Thanks & regards
    Raj Sharma

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would recommend investing in a joint name with you are first holder, wife as second and your kid as nominee. It will save a lot of present and future problem. You may have to delay your investing decision for a while till you complete the KYC formalities, but it would be real helpful for your long term investment plan. Short term pain for long term gain. Please contact us if you have any question or need any help for investing in India. Thanks.

  25. Rohit Verma says:

    Hello sir,
    What will be the consequences if someone doesn’t subMit CRS form??

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Account may be frozen and the data will be reported based on the information they (organization) have in the account. Thanks.

  26. Ron says:

    Dear Mr. Patel, thank you very much for your responses, they are extremely helpful.

    BACKGROUND ABOUT MY QUESTION:
    =============================

    I am a US Passport holder (born in India, have become a US Citizen through the naturalization process)

    I am also an OCI Card holder.

    I have been living in India for the last 10 years, working in India and filing Indian Tax Returns / paying tax on time.

    I have also been filing my US Tax Returns along with the FBAR on time for all these years that I have been living in India.

    PROBLEM STATEMENT:
    ===================

    I have an ICICI Direct account in India which I have been using to invest in Equity and Mutual Funds since 2008 but recently ICICI Direct has put a stop on my ability to trade Mutual Funds.

    They say I can trade Equity but I cannot trade MFs.

    I spoke to them and they asked me to fill in multiple forms where I have provided all the information as indicated above. I have completed all the formalities of the FATCA and related declarations required by ICICI Direct.

    So having lived in India for 10 years now and having filed Indian Tax Returns / Paying India Tax, I considering myself as an Indian Resident.

    MY QUESTIONS IS:
    ================

    Is it right that being an Indian tax paying Resident and after having completed all the formalities of FATCA etc., can ICICI Direct still stop me from trading in Mutual Funds?

    If not, can you please suggest what I should do to activate my Mutual Fund trading ability? Is there a law or regulation on some website that I can put forth to ICICI Direct to activate my MFs trading ability?

    Thank you,
    Ron.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. RBI allows you or any other NRI to invest in MF in India. However, there may be some restrictions imposed by the MF companies or the intermediaries due to their compliance issues. e.g. ICICI has branch in USA so they may have some internal restrictions but there is no blanket restriction. You may decide to change your broker/agent/advisor.
      2. You are an Indian resident however, you are also a US resident. The restrictions are not for Indian resident but that of US residency and not of RBI or FEMA or income tax but of US taxes and comapnies/intermediaries compliance requirements.
      3. Please find another way to trade in MF. You may also contact us. Thanks.

  27. E says:

    Hi,
    SBI sent a letter addressed to my father (Annexure-1-A-CRS and Annexure 1-B-CRS), the subject of which is to cure other indicia.
    We live in Saudi Arabia. The letter arrived on our address in India. Could you tell me how are we supposed to cure the ‘other indicia’? Can it be done online? Where can I find the form?
    Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would recommend contacting the bank understanding the request. I think the bank would only want to get a confirmation about the residential status, country of residence and the tax ID number in the country of residence. While you can google the FATCA/CRS form, it is different for different financial institution. My advice would be to contact the bank. Thanks.

  28. Baljit says:

    Hello sir, i am nri living in italy from last 8 years. Holding local saving a/c with sbi from 10 years. Nre/nro a/c with icici bank from last year. Now i have asked for FATCA DECLARATION BY ICICI BANK. IS THERE ANY THING TO WORRY? Because i have maintained both ypes of a/c. My intention is not tax evasion, as soon as i go to india i will convert my a/c. Because it is very difficult and money consuming process. Translate and attested all itslian documents. My interest income from sbi saving a/c is about 1.5 lac which is exempted for both resident and nro a/c. I want to know ,is facta declaration become a problem for me?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA declaration is mainly for increasing compliance with laws – both India and foreign. In India, when a resident becomes an NRI, he is required to inform the bank and other financial intermediaries of the change in residential status and invest as per FEMA laws and pay taxes as per Income Tax Act for NRIs. Also, the person is required to comply with the income tax laws of the country of residence (Italy, in your case). So if Italian government imposes tax on global income to residents, you ought to report your foreign assets/income (Indian) in Italy and pay tax on the same. Throught FATCA/CRS declaration, the bank will update your correct residential status and the IT department in India will report to the IT department in Italy indicating that an Italian resident has investment and income in India of such and such amount. You are the best judge to determine whether this results in a problem for you. Thanks.

  29. khusru ali says:

    Is it very important to submit

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA / CRS is not part of revised KYC procedures and required. So, I would think it is important. Thanks.

  30. NPatel says:

    Hi,
    1. I was on working Visa in USA in 2006 – 2008 and paying taxes as US resident. Now, I do not hold any accounts/investments/liabilities in USA and don’t file tax returns.
    2. I was in UK for 2015 & 2016 and was paying taxes in UK. I returned back to India and not moving back to UK starting 2017. I do hold a bank account but not receiving any income starting 2017. Since I am an Indian citizen by birth and starting the current year, I am intending to stay in India, do I have to mention my resident status as Indian Resident? Is the FATCA declaration only applicable/related to USA?
    Please advice, thanks in advance

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA declaration is for everyone – residents and non residents. You would declare the residential status as per your current status and whether you are also considered as a US or UK resident for the 2016. Thanks.

  31. Sandeep Radhakrishnan says:

    Dear Sir,

    Request your help to get a clarification for the below query.

    I am working with a Life Insurance Co in India. One of My Client, An HNI BusinessMan in US need a clarification about FATCA/CRS Declaration form.

    As far as my understanding is concerned, the declaration is for checking the residential status. Can u expalin me in simple terms about the same.

    Another Concern for the Client is that, by submitting the FATCA/CRS declaration will his investments in India like FD’s and Mutual funds will become taxable.

    In Life Insurance Policies, Maturity Proceeds are tax free under Sec 10 (10) D. By submitting the FATCA/CRS declaration , will the maturity payouts of Life Insurance Policies will become taxable.

    It would be of great help if you could reply fast as I am having an appointment with the client tomorrow.

    Thanks & Regards,
    Sandeep R

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS declaration can not levy any tax. The income of FD and MF have always been taxable to US based NRIs based on IRS laws. After FATCA/CRS, IRS will know of the Indian assets and income of your client. Again, exemption of 10(10)D is as per Income tax laws of India and not of USA. Thanks.

  32. Divesh says:

    Hi Jigar,
    I am an Australian citizen and OCI card holder. I have NRE/NRO accounts (HSBC and ICICI) in India and investment in MFs and in ULIPs. My KYC is up-to-date, yet I received CRS forms request from HSBC and HSBC Canara (ULIP) only.
    My question is should I provide my Australian TFN to Indian banks? and if not provided what will be the implications.
    I will highly appreciate your valuable advice.
    best regards

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      While your KYC is upto date. It may be before FATCA/CRS declaration is introduced. I would request you to complete the same. And yes, you would need to provide your TFN. The bank would report the income / value to IT department of India which in turn will be shared with your Australian tax department. If you do not report your Indian income to AUS tax dept, you may get an inquiry or notice. Thanks.

  33. Dhananjay Kale says:

    One of our investor has UK citizenship. He has invested in Mutual fund from his NRO Account. He has now moved to India & has fulfilled the criteria of 182 days to be consider as Resident Indian. What should he mention on FATCA form. Tax Residency in Indiaor outside India. Do he require to mention his tax details outside India on the form.

    Please guide.

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      While he is an Indian resident, you would need to see if he can still be considered as UK resident. He can be both. You would need to report accordingly in the FATCA/FBAR form. Thanks.

  34. mahjoor says:

    plz give full information about facta crs declaration form

  35. Shashikumar says:

    Mr. Patel,

    I am a Canadian citizen. From 2007 I have been living & working in India as a OCI and paying taxes in india regularly.
    All my investments are still in Canada. I have been transferring my money from canadian account to Indian NRE account where interest earned in NRE account is not taxable. After FATCA declaration will I continue to earn tax free interest from FD in NRE acoount ?
    Even though I am a resident of india, can I still continue to hold NRE Account ?
    Please clarify.
    Thanking you.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you have moved to India, you are not allowed to have NRE account. Also, the interest on NRE account becomes taxable from the date on return to India i.e. from 2007. Thanks.

  36. NN says:

    Hi Jigar

    I came some queries with regards to my tax residency status. Below are my details for 2016
    Jan’16-March’16 – Working outside India on a work visa
    April’16 – July-16 – Working in India
    Aug’16 – Went for a business trip outside India (salary was received in India as it was a business trip)
    Sept’16-Oct 15th 2016 – Was working in India
    October 15th – Travelled to USA on H1B and currently working here

    Based on the above data, can you please establish my tax residency status for USA and India.
    Since I was only for 2.5 months in USA for FY Jan’16-Dec’16 – I have filed my taxes as non-resident and filed my tax an non-resident alien in USA
    With regards to Indian FY April 2016-March 2017, I stayed less than 182 days in India (if I exclude the 30 days for which I was on the business trip). Would it would classify me as a non-resident status for tax purposes? Can I be a non-resident at both the locations as per the above data points? If yes, what should be my country of residence for tax purposes, which I need to fill in FATCA/CRS form

    Further based on above, If if I classify as a resident in India, do I need to add my US income (Oct’16-March’17) to India income while filing taxes for April’16-March’17 as I am already staying in US and did file as an NRI for 2016 and would file as a resident for 2017

    Thanks

    Regards
    NN

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. I think you may not be a tax resident of USA for 2016 as your stay in USA would be only 76 days.
      2. For 2016-17, tax year, as you have stayed outside India for 182 days, you would be an NRI.
      3. Your status could be NRI for both India and USA. This is a delicate situation for next 1.5 months. From January, you would be a resident of USA.
      4. Your residential status under FEMA and Income tax are different. Only if you are an Ordinary Resident under Income tax, you are required to include all your foreign income and assets in your Indian tax return. Thanks.

  37. Aman says:

    Hello Jigar, please share your email id.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The email and contact information are in “Contact Us” section. Thanks.

  38. Neeraj Joshi says:

    Hello ,

    I am a account holder in Axis . I just want to know is there any facility to self certify online or we only have to download , fill and send the form ?

    Can you please clear

    And in case of NPS ? Can you please clear.

    Thanks
    Neeraj

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Please contact Axis bank or the relationship manager and he will guide you. While bank may have an online system, others may not. However, as there is centralized KYC Regulation Agency, you may have to do just once. Please check with bank / advisor. Thanks.

  39. Raaj says:

    Mr.Jigar,

    We became US citizens and live in India as OCI card holders. We file returns in both countries declaring all our global income even before FATCA was put in place. Do we still have any obligation versus FATCA? For tax purposes, holding OCI card means we are Indian residential status and citizens right? Am I understanding this right?

    Thanks

    Raaj

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      If you are complying IRS laws about reporting global income and submitting FATCA form (8938) and FBAR, you do not have to worry. With FATCA form, the bank and other institution will know that you are also a US resident and will report your income to IRS. IRS will match the numbers with the 1040 that you have filed and as both of them will match, you would be okay. Nothing to worry. Thanks.

  40. Carl says:

    very informative post. I have a few questions.
    1. Does one have to declare foreign assets outside India every year?
    2. Let’s say the Indian resident declares the foreign assets for 2015-16 but forgets to declare it in 2016-17(because of the CA ) and the return for 2016-17 is filed after the due date , can the return be amended/revised?
    Thanks again.

    • Carl says:

      Rectification:
      1. Does a RESIDENT have to declare foreign assets outside India every year when filing IT return in India?

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        1. Yes. Foreign assets need to be declared every year as the assets as on year end (March 31) is declared. A resident also needs to include the income from the foreign assets as well.
        2. The return can not be revised if filed after due date. Also the return can only be revised if there is change in income. You may not be able to revise the return just to add foreign assets. You have to change the income even Rs. 10. Thanks.

  41. Shobha says:

    We dont have any foreign income eventough we have 2 submit fatca self declaration.
    Can we send the self declaration by courier to the mentioned address

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/ CRS is a part of revised KYC procedures and required for all accounts.
      Yes, you can send the self declaration by courier. However, please confirm with the organization that sent your the form. Thanks.

  42. Sudhir says:

    Dear Sir,

    Thank you for sharing important information on FACTA/CRS ,

    I received mail to submit my self declaration form with in 7 days from the time I receive the mail.

    My question is

    I’m Indian citizen and have no other citizenship, and I’m self employed from last 2 years, in my work I receive funds from Church community to my SBI SB A/C and sometime I also receive funds from USA through western union for work here I do with church.

    How should I submit my self declaration form.
    Do I need to mention anything specific about funds.
    And I haven’t payed any income tax so far , as I’m returning original bills to church community which gives me funds, but for funds I received I haven’t paid tax returns.

    Please educate me on it.

    Regards

    Sudhir Asadi

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You are an Indian Resident for tax purpose.
      2. Money received for Church activity is not related to your income (assuming nothing kept) but that of the Church activity so I would assume that Church would be reporting these information under Foreign Contribution. Thanks.

  43. Neel says:

    Dear Sir,
    Thanks for the informative blog.
    I am a US Citizen born in India and now for the past 20+ years back living in India after living in the USA for 21 years. I am retired and collect US SS Benefits ($1000/mnth) into my local bank in Goa. My wife is an Indian citizen and has relinquished her Green Card.
    I have regularly been paying taxes here in India, possess a PAN Number, and have investments such as MFs and FDs which come to around 33L. I recently received an SMS from CAMS asking me to submit a FATCA declaration. On the form there is a question I am having trouble with: Country of Tax Residency. There is no field for citizenship, etc. I noticed that on your intro page you wrote that even those US Citizens living full-time in India are considered tax residents of USA. Can you kindly expand on this? Also, am I required to file JBAR and US tax returns? Do I need to pay taxes in India on my US Social Security payments?
    Thanks in advance, Sincerely, Neel

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes, US citizens are considered as US tax resident and are required to comply with FATCA and FBAR requirement as well as report global income and pay tax. If you have paid tax in India, you would get credit but you may still be required to file tax returns and forms. Thanks.

  44. Soni says:

    Hello Sir,

    I received the below message today

    FATCA. If your Country of Birth, Nationality, Citizenship, Tax Residency is only India and no other country, send SMS confirmation to by typin CAMS/AMC office or call 1-800-200-2267 / 1-800-419-2267. As per recent Income Tax notification, if the relevant information is not provided by 30th April 2017, else your account will get blocked and no further transactions shall be allowed.

    I am an Indian resident and I was working in India only. I took a year off and haven’t earned anything from feb last year. So do I need to reply to this message? Please guide me.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You may reply with the information that you are an Indian resident and are not resident of any country other than India. You would also give the information as requested. However, I would not give the info via sms but would file a form officially with the mutual fund company or update records electronically on the CAMS website. Thanks.

      • Shashi Patel says:

        Dear Jigar
        I was searching for details to help me fill up the FATCA/CRS which I recently received from ICICI BANK in India. I have a savings account with approx. 5 Lacs in NRE and 4 Lacs in NRO account jointly with my wife. I accidently came across your article on how to fill the FATCA/CRS . I would be obliged if you help me how to fill the form . I would like to know what I should write in the column for Citizenship and also in the column for Residence for Tax Purposes. I was born in Fiji Islands and I am a British Citizen and I live in United Kingdom and I am a OCI Card holder. My wife was born in India but she has obtained British Citizen and also lives in UK and also holds OCI Card. am confused as what to write in various different columns. I would appreciate your assistance. Regards Shashi Patel ( sorry I didn’t know where to write to you hence I wrote in this comments section )

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. As you are a British Citizen, your nationality would be “UK”.
          2. As you live in UK, your resident country is also UK.
          3. Please also check whether you are also considered a citizen or resident of Fiji due to birth. I don’t think so but better to check.
          4. Your wife’s status would also be UK both for nationality and country of residence. You would give your HMRC number as your tax ID. Thanks.

  45. Sandeep says:

    Today I went to close my savings account with HDFC Bank (no investment account, just a pure savings account). They asked me to fill a FATCA declaration for closure. Is this required?
    Neither HDFC or any of the two other banks I deal with have ever asked for a FATCA declaration. I have submitted the same for my Mutual Fund investments.
    Kindly clarify.

    • Sandeep says:

      Just to clarify I am a resident and citizen of India and have no foreign accounts/assets.

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        FATCA/CRS declaration is now part of upated KYC requirement and is required for all account holders/investors. Also, this is not for your foreign accounts or assets but is to find out if you are a tax resident of any foreign country. If you are not, then made the declaration accordingly. Thanks.

  46. Greta says:

    Dear Mr Jigar,
    I am an Italian citizen living and working in Mumbai since May 2012. Since 2012 I pay my taxes in India and I have moved my residence here. In fact, the Italian consulate of Mumbai has registered me as an “Italian resident abroad”. I do not have any other source of income except for my job in Mumbai and I have never paid my taxes in Italy (because I never worked there).
    In February 2017, I started a life insurance with Kotak. They issued the policy with WRONG nationality (in spite of the fact that I addressed the mistake at the time the proposal was sent). So, the policy states that I am Indian (but I have always been Italian!).
    Now, to rectify THEIR mistake, they are asking me to fill the CRS form. As the form says, it is meant for “Person Residing Outside India”. Why should I declare something which is not correct, if I am a resident in Mumbai since 2012? Do they have the right to ask me to fill a form that does not relate to me?
    Kindly help. Thank you very much and regards

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Your status is “Resident” of India but “Citizen” of Italy. You would just tell them that. I am sure they will understand as there are many foreign nationals living in India. Thanks.

  47. Nishant banait says:

    Dear Sir,
    I was working in UK for nearly 3 years and moved back to India in June 2015. I hold an overseas bank account with me which hardly has any assets now. Since june 2015 i am working in India only and have closed my NRE and NRO accounts.
    Do I need to furnish details of this foreign account by filling up FATCA/CRS?
    If I am moving to UK again do I need to close all my resident accounts in India immediately or after 6 months?
    does this include mutual fund and demat accounts as well?
    Thanks
    Dr Nishant

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS declaration is now part of revised KYC procedures and everyone needs to complete the same. So, you will be required to complete the form. However, as you are an Indian resident and can not be termed as resident of UK, you would declare as such. NO need to worry.
      If you are moving to UK, you would inform the bank and mutual funds of the change of status (either from resident to NRI or on becoming UK resident). Number of month would depend on the purpose of leaving India and residential status rules of India as well as UK. However, I would think after 3-6 months would be okay. Thanks.

  48. NS says:

    Since India signed FFA in Sept 2015 , when will it start sharing account data with usa?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The data will be shared as agreed i.e. USA – from July 2014 and other countries form January 2016. However, the actual sharing will happen form 2017 end (Two years given to setup system and gather data). Thanks.

  49. Eashan Joshi says:

    Hi, is the FATCA by account or by taxpayer? I held ULIPs with ICICI Pru Life in my kids’ names where I am the mandate holder (2 policies, kids are US citizens and so am I) from 2012 when no FATCA was mandatory at account opening and subsequently have never received any emails or correspondence from ICICI to update anything on those accounts. The ULIPs have always been in an “NRI” status where my investment choices were restricted. I surrendered both policies after 5 years of premium payments. I was not asked for any FATCA information at that time as well. Like many ignorant NRIs, I have not reported these in my US taxes though I was up to speed on my bank account reporting requirements so all my bank accounts are being reported every year from 2011. The maturity amount on each policy was $100K+. In dollar terms, the gain is not much if I factor in the premium payment each year at then exchange rates. How should I deal with these ULIPs?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would recommend reporting the income (gain in $) in the year of receipt i.e. while filing 2017 tax year. However, I suggest you to contact your CPA. Thanks.

  50. Ramesh says:

    Hello,

    I have been living in Australia for last 6 months and almost 2 years before I had invested in equity which I am still holding. Though I have sold some shares, but I have not done any new purchases of any shares. Just wanted to check on two things –
    1) If I want to continue trading in equity in India, can I do all formalities from here in Australia or I need to be physically present in India to complete formalities (Like – converting my bank account to NRO/NRI account and open PIS account etc) If yes, what all I have to do it, can you please direct me to someone who can help me please for a fee?
    2) I have been prompted to submit FACTA/CRS update when I log into my trading account with sharekhan, what should I do and what is the last day for this to be updated as I do not know about its repurcussion. Please help

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You can do all formalities in Australia and no physical presence is required. You may have to go to the Indian Embassy but not required to visit India.
      2. Please complete the form as soon as possible as it is now a requirement. Please also note that your assets and accounts will be shared with the Australian tax department.Thanks.

  51. Cosmicwaz says:

    Dear Mr. Patel –
    I was looking for some guidance and after going through your blog, I feel certain that you are very qualified and would provide an apt suggestion to my query listed below.
    With the recent tweet from the CBDT “All bank accounts that were opened between July 1, 2014 and August 31, 2015 will require submission of self certification forms by April 30 this year, failing which the accounts will be blocked, according to a statement issued by the Central Board of Direct Taxes.”
    ..Are they specifically looking for accounts from July – 2014 to August 2015?
    I opened an NRE A/c in Jan 2016. I hold an Indian passport. I was residing in Macau there working for a large Hotel Organization. Our taxes were deducted directly before we received a salary. However I also took up ‘contractual’ job for an American private firm dealing in Telecom which required me to manage/coordinate their project(s) as a ‘Virtual Assistant’. They have no physical presence in Macau/China but help facilitate clients. In ‘this’ fiscal year all that I made from this American firm as a virtual assistant was directly wired to the Bank in India from the company’s bank in the US. The amount is <25 Lac with most of it used to support my family back in India. The US govt doesnot pay my taxes and provide no benefit other than the money wired every month. Now I am relocating to Philippines with another company and will continue to hold the 'virtual assistant’s' job.
    So – my question to you is –
    – As an Indian passport holder located in Macau am I eligible to pay tax for this additional income? if so – to which govt? India/Macau?
    - As the money doesnot come to Macau, they have never asked me for any clarification on the 'other' job.
    - I have not paid anything so far. Is this a punishable offence?
    - What documents do I need to provide if I need to pay in India?
    Also note that I had provided my, PAN, passport copy, a copy of the visa, a copy of the contract with the hotel in Macau when I opened the account.
    Thank you for your prompt guidance.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. As you are an NRI, any income outside India is not taxable so no need to pay tax in India assuming income is received outside India. If the American company is paying directly to your NRE account, it is a grey area. I would recommend opening a bank account outside India and then remit the funds to India to save any complications. However, as you were a Macau resident, if such income is taxable in Macau, you would pay tax as per laws of China.
      2. If no tax is paid, it may be tax evasion or black money or anything else. If the US company deducts tax before making payment to you, it may be okay. Else, it may be considered as tax evasion. Thanks.

  52. Sumit Kumar Pal says:

    Hello Sir,
    From Oct 2015 to till date i am working in Indonesia. I get my salary in 2 parts 1) 50% in indonesia salary account 2) 50% in India saving account.
    Last year i tried lot of times to open NRI account in sbi but as my working visa was not valid due to date was finished i cannot open. I got new working visa processing form, i showed that then also i was unable to open nri account. Now for my parents and wife salary gets credit in normal joint saving account every month.
    Can u suggest what should i do for FATCA/CRS?

    • Sumit Kumar Pal says:

      My company is paying tax amount in indonesia. I have tax receipt and tax card also.
      I have 2 account in india:-
      1) single account
      2) joint account with my wife. Salary do credit here every month.
      Please suggest what should i do for FATCA/CRS?

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        I would think no tax is being paid on the 50% part that is being credited in the savings account in India – not in Indonesia nor in India. It may be considered as a black money or the income that has escaped assessment. I would recommend to receive 100% in Indonesia or in any other country and then transfer to India in your NRE account to save any complication. For FATCA, I think you would need to indicate that you are an NRI and a tax resident of Indonesia and convert your account to NRO. Thanks.

  53. PrakashMungli says:

    Hi Mr Patel,

    I had few questions but I read through everyones questions above and your detailed answers for each questions. I got my answers from them. I just wanted to thank you first for this useful blog article. Most importantly I must thank you and appreciate your “reply to everyones questions”. Thank you again.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Thank you very much. Really appreciate your nice words. Best Regards.

  54. SP says:

    Hello Jigar,

    I was holding a Canadian PR since 2012, jan and now am a Canadian citizen since Oct 2016, I hold NRI – banking savings a/c (in which interest from my FDs gets credited, monthly/qtrly) from SBI and also a few 1 yr , 2 yrs FDs with the same bank simultaneously containing my Canadian savings from my income . I was told I am not obligated to pay taxes in India on these a/cs as they are NRI based , however I was also told my accountant here in Canada that unless I bring my FDs – monies to Canada I don’t have to declare them in Canada for Tax purpose. Also Is there a threshold of a certain amount post which I have to declare or do I have to declare it anywhich ways ? Also I hold a LIC and a few mutual funds back in india ? How do I handle those ? Plz advise ?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The requirement, compliance and threshold is different for different countries. As you have already consulted a CA/CPA in Canada, I would recommend that you follow his advise. You may want to take a second opinion (another CA/CPA in Canada) for the same. Unfortunately, we may not be as well informed about Canadian requirement. Thanks.

    • Cosmicwaz says:

      Dear Mr. Patel –

      I was looking for some guidance and after going through your blog, I feel certain that you have very qualified and would provide an apt suggestion to my query listed below.

      With the recent tweet from the CBDT “All bank accounts that were opened between July 1, 2014 and August 31, 2015 will require submission of self certification forms by April 30 this year, failing which the accounts will be blocked, according to a statement issued by the Central Board of Direct Taxes.”

      ..Are they specifically looking for accounts from July – 2014 to August 2015?

      I opened an NRE A/c in Jan 2016. I hold an Indian passport. I was residing in Macau then working for a large Hotel Organization. Our taxes were deducted directly before we received a salary. However I also took up ‘contractual’ job for an American private firm dealing in Telecom which required me to manage/coordinate their project(s) as a ‘Virtual Assistant’. They have no physical presence in Macau/China but help facilitate clients. In ‘this’ fiscal year all that I made from this American firm as a virtual assistant was directly wired to the Bank in India from the company’s bank in the US. The amount is <25 Lac with most of it used to support my family back in India. The US govt doesnot pay my taxes and provide no benefit other than the money wired every month. Now I am relocating to Philippines with another company and will continue to hold the 'virtual assistant' job.

      So – my question to you is –

      – As an Indian passport located in Macau am I eligible to pay tax for this additional income? if so – to which govt? India/Macau?
      - As the money doesnot come to Macau, they have never asked me for any clarification on the 'other' job.
      - I have not paid anything so far. Is this a punishable offence?
      - What documents do I need to provide if I need to pay in India?

      Thank you for your prompt guidance.

      • Cosmicwaz says:

        Also note that I had provided my, PAN, passport copy, a copy of the visa, a copy of the contract with the hotel in Macau when I opened the account.

    • Bidyadhar Rout says:

      Sir,
      Kindly send the address to which I have send my Self-Certification – FATCA/CRS declaration form

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        There is no general depository for submitting FATCA/CRS declaration. It is specific to the orbanization/bank/DP. You would send the FATCA/CRS declaration to the organization that has send the form. The address would be in the form. Thanks.

  55. Kishore says:

    Dear Mr. Jigar Patel,

    I found your website looking for information regarding CRS. Reading your site – I feel that you can help me.

    - I am an OCI with Netherlands nationality.
    - I have residing in Thailand for the last three years and doing business here. I have a tax number and I am a taxpayer in Thailand.
    - I hold a NRI saving account and fixed deposit accounts in ICICI bank in India. The interest I earn here is Tax free in India since 7 years.

    I am in process of filing out my Fatca/Crs declaration form for the bank. I have to inform them that Thailand is my resident country and not The Netherlands.

    I like to know – whether all my ICICI bank information will be passed on to The Netherlands or Thailand tax department. I do not have any income of any sort or assets in The Netherlands. I still hold a Dutch passport. I am still obliged to fill out the tax return in The Netherlands. Which is showing no income since 2011.

    I will really appreciate your help here.

    Best regards

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. It is okay to have a residence in more than 1 country. You first need to decide whether you are also considered as a resident of Netherlands for tax purposes. If yes, include both Thailand and Netherlands as your countries of residence. If no, include only Thailand.
      2. Based on your declaration, your information will be updated in the system and reported to the respective or both countries. The bank would rely on your declaration.Thanks.

  56. sekar says:

    Sir,I am a degree holder in Tamilnadu,now I am searching for job ,I must fill FATCA declaration for SB account opening

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA declaration is now part of a revised KYC procedures and everyone may need to file. There is no need to worry. Thanks.

  57. Ramesh says:

    Hello Sir,
    Thanks for your details explanation about FATCA CRS.
    I am from India and last 16 months I am in in US on working VISA.
    I am holding few shares in sbicapsec and icici mutual fund and they are asking to submit FATCA CRS form.
    Do I am eligible for FCTCA CRS decleraion? If Yes,
    what will be Country of tax residence (as per section 6 of the Income-tax Act, 1961) out of these 3 below
    a) Any other country b) India and any other country c) Only India
    Please help me to clarify on above queries.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. FATCA/CRS is a part of updated KYC – Know Your Customer requirement so you would need to provide the same.
      2. As you are on an H1B visa and have been living in USA for past 16 months, you are a US resident for tax purposes.
      3. I don’t think you are a resident of India as you do not stay in India for 60+ days. So, you are only a resident of USA (a) Any other country. You would also need to provide your SSN as a Tax Id number (TIN). Thanks.

  58. Datin Jas says:

    I am an Indian citizen and a resident of India.

    Some years ago I lived in the US (as an Indian citizen on a work visa) and had made investments in the US from my salary income there. When I returned to India, I did not liquidate these investments and I continue to hold them. My investments are now in (i) money held in a savings account in a US bank, and (ii) a retirement account which was funded directly through my company (similar to the provident fund system in India).

    I am liable to pay some amount of tax in the US on the income earned from these investments, which I do so every year.

    Under the BMA or otherwise, what am I required to do visavis declaring these assets?

    Additionally, are these investments being automatically reported to the Indian tax authorities through CRS?

    Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. As you are an Ordinary Resident, you need to declare your foreign assets in your tax return (including your bank accounts, 401k or any other account).
      2. You also need to declare all your US income in your Indian tax return. Please note that while certain income is not taxable in USA (401k dividend), it may be taxable in India. FYI, I am reporting my 401k balance and income in my Indian tax return as foreign assets and income respectively.
      3. Yes, I think it will be reported under FATCA/CRS regime. Thanks.

  59. R.Visweshwaran says:

    I am an NRI residing in UAE. Today I saw a request from my Bank (Canara Bank) to submit the FATCA. I do not pay any tax in UAE since this is a tax exempt country. In that case, in teh tax residence declaration, should I mention ” I am a Tax resident of UAE” or just leave that blank and mention separately in a letter. Since there is no personal Income Tax I do not have any TIN etc.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I don’t think you can leave the TIN detail blank. Please include your resident ID card number of any number by UAE government as a TIN. Thanks.

  60. Siraj says:

    Hello Sir,
    I recieved a letter from sbi requesting for CRS A information. The letter is addressed to my spouse and no account number is mentioned on the letter. I have join NRE ac and also ordinary account with sbi. The transactions are very basic in both accounts and less than 1 lakh rupees in ordinary ac and less than 10k in nre ac. My question is
    - what should I write as I have no PAN nr for my spouse as she is not working and never filed tax in india. in fact she does not have pan nr.
    - but she does have an ac here in EU which is joint acount and we pay tax for this jointly every year here. Should I provide details of this account in CRS?
    - Is it possible to convert ordinary ac in india by letter or signed request from here as I could not find such online form on bank website.
    - what is the basis for sbi to send such form (is it my nre ac?)

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. If she has no PAN, you will not provide PAN. The FATCA/CRS is for the tax ID of your country of residence.
      2. CRS does not ask for any foreign bank account but only the information of its account holders to verify that the money in one account is declared income and after-tax money.
      3. You would need to contact your bank and follow its procedures for converting your bank account.
      4. FATCA/CRS is now part of a revised KYC procedures and all account holders, sooner or later would need to provide the same for transparency and compliance. In your case, as you hold the account as NRO or NRE, it is obvious that your resident country is different from India, you are getting the letter sooner. Thanks.

  61. Hello sir,
    I am RD Patel. I am really appreciated by seeing your good advice and your support. I have questions.
    I Got a mail for FATCA/CRS for my PAN– DUE DILIGENCE
    1. I don’t have any foreign residency so I need to update details?
    2. I am Resident of INDIA only & Not any other Country. I have Credit cards of HDFC Bank and Axis Bank for online payment of Utility Bills like LIC Premium, MaxLife Super ULIP Policy premium, HDFC ERGO Insurance Policy premium etc. only. I have Savings Bank A/C with SBI, Axis Bank & Dena Bank. Needs your advice before 20th FEB.
    How I reply mail of FATCA/CRS of my PAN– DUE DILIGENCE Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. If you are only an India resident, you would mention the same in the form. But you would need to report/submit the same as it is now part of a revised KYC requirement.
      2. Just provide the information about your self as required in the form – occupation, income, political affiliation, etc. and that you are NOT a resident of any country other than India, sign and submit. Thanks.

  62. Juliana says:

    I am an NRI living and working in the State of Kuwait. I have been living here since my childhood and now work here since the last 25 years. Kuwait does no impose taxes on anything. I do have NRE accounts in India, have a PAN Card as well. We have been asked to fill up the CRS Individual Self Certification form. What do I fill in the space where it asks for “Country of Tax Residence”? Do I write Kuwait or India? and no TIN as we don’t pay taxes here. Please advise.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You are a tax resident of Kuwait. You may give your resident ID card number as TIN. Thanks.

  63. MRR says:

    For the purposes of FATCA and FBAR, common understanding is that maintaining bank statements is very important.

    1. For how many years are we supposed to maintain these statements ?

    2. Bank statements in India, most of them dont give account opening date, and during closure there is nothing explicitly saying that account is closed, and bank officials are not very helpful in giving any such letter. It is a real pain. Please advise.

    3. Some banks clearly state that they cannot give statements more than 4 years old. And you have to follow up again and again to the extent that it feels like begging. What do we do here ?

    In case IRS raises any questions or seeks explanations, the above will become a huge pain factor. What to do ?

    Thank you
    MRR

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. 7 years
      2. Please contact the bank.
      3. Raise the issue to higher authorities and tell them that it is a compliance issue. Thanks.

  64. Prathap says:

    Hello Sir,

    I am Prathap, residing in Germany. I have come here on a work visa and its been 7 months. I have got a mail from SBI, asking me to submit the Annexure 1-A-CRS and Annexure 1-A-CRS.
    I would like to have your suggestion on this,
    1. Is it required for me to submmit this.
    2. Is it bec I am traansferring money to my Indian acc to be used by my parents.
    3. I am paying my taxes here, so do I also need to pay the Tax in India.
    4. What are all the documents I need to attach along with this, if at all I need to submit this Annexure.

    Thanks In Advance
    Prathap

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1-2. FATCA/CRS is not a part of updated KYC requirement and EVERYONE would need to submit the same.
      3. As you are an NRI, your foreign income is not taxed in India. This is mainly for tax laws of your resident country i.e. Germany. If you are required to report your Indian Income in your Germany return, currently there is no mechanism for German Tax Dept to know how much you earned in India. With exchange of information, your account and income information will be shared between both countries.
      4. I think you would only need to attach the passport/visa and address proof. Thanks.

  65. Shashwat says:

    Sir,
    I live in Kuwait for about 3 years. I have NRE accounts in India.
    Also I did not close the local resident account in SBI and one associated DAMT account.
    I never did any trading through DMAT in last 4 years. I have few shares and 10 years Infra bonds (which i bought while residing in India) Also the resident account is idle.
    I am aware that I should not have both NRE and resident accounts together.

    1. After FATCA declaration in SBI DMAT as a resident of Kuwait, Will I be in trouble due to maintaining both resident account and NRE account?
    2. There is no Tax in Kuwait. So my country of tax is only India or India & Kuwait Both?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Currently, RBI is not penalizing but is after increasing compliance with laws. So I don’t you will be penalized. However, I would recommend you to change your status to NRI and change your savings account to NRO.
      2. As you do not live in India, you are an NRI and NOT a resident of India. You may be a CITIZEN of India but not a resident. I think you would be a resident of only Kuwait. Thanks.

  66. Parminder says:

    Hi,

    I would like to ask you few questions regarding FATCA/CRS Declaration form.My mother is a US citizen and INDIAN OCI holder . She has CD deposits in oriental bank of commerce in India total amount 70 lacks ( 70,00000.00 ) rupees. She is a house wife in US and filling joint tax return with my father. Few days ago we just got this letter along with FATCA/CRS declaration form. I guess they need her Social security number and also her basic information. So what kind of action is appropriate from our end . I really appreciate for your precious time and help thx !!!!

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      If your mother has reported the OBC FD and income in her return, there is nothing to worry. If not, the IRS will know as India will share the information. So, I would recommend that She voluntary disclose the non-compliance, pay tax, interest and penalty and get her investment sorted out. Please contact your CPA in USA. Thanks.

  67. Khan says:

    Dear Mr Jigar Patel,
    Pls enlighten me on Fatca
    I am working in Nigeria for past 20 years. I recved 80%salary in overseas account in UK and rest in Nigeria .My company pays tax on my Nigeria income and I do not possess any record for it. The income in my UK account is not taxable in UK as I am not a UK resident nor is the income generated in UK. I remit money from my UK account to India based on my needs there, pls advise what is the way forward for me as my bank has asked to complete the Fatca CRS form and submit in 7 days as the deadline has expired on 31st Dec 2016

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You need to first confirm if the income in India and UK is taxed in Nigeria. If not, there is nothing to worry for submitting FATCA/CRS form. While the Nigerian government will know that you have so many assets and income but won’t be able to levy any tax/ penalty. Thanks.

  68. Raj A says:

    Dear Mr. Patel,

    Could you please confirm whether securities/trading account in India needs to be declared under FATCA in addition to demat and bank accounts ? All assets are held as shares in demat or Rs. in bank accounts. In USA, brokerage accounts combine trading with demat. However, this is not true in India.

    Thank you.

    Raj A

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      In India, there is no balance is trading account. It is being used to raise invoice for purchase or balance on sale and is immediately paid or received. As an NRI, you would have PIS account which works as a bridge between your Bank account and Demat account. You would include your Demant, PIS and Bank account in FBAR/FATCA and not the trading account. Thanks.

      • Rajansinh Matroja says:

        Hello Sir,

        I had demat and trading account with SBICAP securities. That account was idel for me since last 2 years so, this year I closed those demat and trading account in August 2016. Now, on 30th Jan 2017 they send me mail to fill up FACT/CRS form. So, I told them that I had closed my account and there is no more relationship between me and your firm and I had never did any single transaction.

        I want to know that is it necessary to fill up the form ?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. The FATCA/CRS is effective from Nov 1, 2015. So all accounts needs to be updated, even the closed ones. So, what they are doing as per the requirement and is right.
          2. That being said, if you do not want to reply/submit, you may chose to as you have already closed the account and you have no relationship with the bank/SBICAP. Thanks.

  69. jitu says:

    Hello sir,
    I m jitu chauhan. I really nice to see good advice. I all really appreciate your support. I have questions.
    Got a mail for FATCA/CRS – DUE DILIGENCE
    1. I don’t have any foreign residency so i need to update details?
    2. I have HDFC current a/c proprietorship with MSME registered Documents.
    needs your advice before 31st.
    How i reply mail of FATCA/CRS – DUE DILIGENCE

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. FATCA/CRS is a part of new KYC requirement. I would recommend you complete the same so they update your account in system and you don’t have to worry in future.
      2. You may say that you are an Indian resident and not a resident of a country other than India and you are the Ultimate Beneficial Owner (UBO) of the account. I think the form would have a UBO declaration as well. If question, please contact your relationship manager. Thanks.

  70. Masroor Jawaid says:

    Mr, Patel. I really nice to see good advice. We all really appreciate your support. I have 2 questions, regarding FATCA & CSR.
    I am US citizen & I received 2 letters regarding my NRE Account at SBI (Around < Rs. 70K) and My Dad (Who lives in India has PoA on my NRE account).
    1) Annexure 1- A-CRS : This is regarding my Residency proof
    2) Annexure-1-B-CRS : This for POA.

    What do i need to do ? Send my Passport Copy as proof.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You may send your passport and your driver’s license so they have both the citizenship and address. I think you would also need to give your SSN.
      2. Your father may give his passport and Indian address. Thanks.

  71. Ajay says:

    I am working in an African country, here they deduct POY on Salary and Tax is paid by company itself. What should I fill in FATCA declaration as there is no TIN number being issued to individuals

    • Ajay says:

      Sorry, Typo error it is PAYE stands for Pay-As-You-Earn. Our employer deducts it from Salary itself.

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        You are a resident of a African country so you would give your Tax ID or your resident card ID or your resident VISA number. Thanks.

  72. ps says:

    Hello! Thanks for this article!!
    I have been residing in the USA for the last 8 years and am a permanent resident. Till date I have not declared my Indian assets.
    I have mutual funds, property, gold(sold 2 years ago). The total income made in the last 8 years from these would be less than Rs 3 lakhs. Most of this income is when I sold the gold and a small portion of this income is from dividends.
    SBIcapsec has now asked me to fill out a simple form where my SSN and US address proof is requested.
    The total value of shares is around Rs 30 lakhs. As per stamp papers the property is worth around RS 8 lakhs. And the gold was around 30 talks (this is now sold). I have about 4 lakhs in my joint account (which is the money I sent from US).
    I plan to declare all this while filing my tax returns in US(in a couple of months).
    1) Do you think I will be penalized?
    2) If yes, would it be on the income I made from these assets or the entire asset value?
    3) The date to submit the info to sbicapsec is 18th Dec and I plan to do that. Do I need to get in touch with IRS asap before they reach out to me?

    Thanks!

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Yes, you may be. IRS does not encourage “quiet” disclosure and have 2 programs – Overseas Voluntary Disclosure Program and Streamline Compliance Procedures to regularize your previous non-compliance.
      2. Both – Tax and interest on Income and penalty on assets (immovable properties and gold not included). However, you used cheque to buy gold so the balance in bank would be covered.
      3. I don’t think the deadline is hard lined i.e. penalized if not submitted by Dec 18. However, you are encouraged to comply as soon as possible. Also, there would be some delay from you declaring your status to SBI to SBI reporting the info to IT department to Indian government reporting to IRS and IRS analyzing all data and fining non-compliance by you. Please contact your CPA. Thanks.

  73. Rangwala Z E says:

    Hello Sir,
    I have following Independent Questions.

    1) I am currently living in US and NRI in India now. If i have income in US which is below threshold limit of US taxation or i have no income from US, what i need to select in tax resident in any other country other than india? Yes or No.

    2) I am a medical professional. What i need to select in Nationality if i am visiting US during the year for business / profession purpose and paying taxes in US also. I am also assessed to indian income tax and filing my indian income tax return with status of Ordinarily resident in india. Should i have to select both Indian & US Nationality or only indian or US? Please advise.

    Thanking You.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. As you live in USA, you are a tax resident of USA. Whether you have taxable income or not does not matter.
      2. Nationality is the citizenship. Just look at the passport and you would know your nationality. Thanks.

  74. Satheesh says:

    Sir,

    I was working abroad (Netherlands) till 20-Oct’16, and returned back to India. My bank has sent me a mail asking me to submit CRS. In this case, should I report myself as Resident or NRI ? Kindly clarify.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. It would depend whether you have returned permanently or temporarily. Whether you have started a job or business in India or whether you plan to go out of India. If you have moved permanently, you may say you are now not a resident of any country other than India. However, you would need to check whether you are considered a resident of Netherlands based on its laws.
      2. Please note that if you say that you are not a resident of any country other than India, you are not allowed to maintain NRO, NRE or FCNR accounts and the interest on NRE FD or account would become taxable.
      3. Also, if you indicate that you are a resident of Netherlands, your account and income would be shared with the Netherlands and you may receive an inquiry from Netherlands’ tax department if you were supposed to report Indian assets/income and you had not shown the same in your Netherlands’ tax return. I would request you to consult someone to understand the laws and requirements. Thanks.

  75. Sheshadri says:

    I am a Private employee with Amazon and receive Salary as per company norms including Tax deductions. I have a SBI account and there are no Foreign transactions made. However, I received a message asking to submit the FATCA/CRS declaration for my PAN No.

    May I have the detailed info on this as I need to submit it before 18th Dec 2016 and I do not know which form to look at. Helping me with the Form link or is it necessary for me as I do not have any Foreign account.

    Awaiting. Thank you.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would assume that you are an employee of Amazon India. The FATCA/CRS declaration is now part of revised KYC requirement and everyone would need to complete the same. If you are not a resident of any other country, you would declare as such and sign. You do not have anything to worry. I would recommend to complete the same. You would only include the relevant details regarding place of birth, nationality, occupation, income, political person etc. You may also have to provide a copy of your passport or any other document as required to the bank. Thanks.

  76. yelakanti@gmail.com says:

    Dear Sir,
    I have a quick question for you. My mom is US Citizen paying taxes in US as US Citizen every year but she lives in India and pays taxes there for the income she earns in India and she has NRE accounts in India which are not taxable. Recently she received to fill FATCA form and as per the form is she a US Person (Yes/No). Will it be yes or no. Do we have to give her Social security number in the form. As per the form if US Person is Yes then we need to submit SSN number. Little confused here. Can you suggest please.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. As your mother is a US citizen, she is a US resident for tax purpose and required to report all her income (including NRE interest) in USA.
      2. As your mother lives in India, she is an Indian resident and is not allowed to maintain an NRE account and the interest on NRE account would be taxable for her.
      3. To answer your question about FATCA form, your mother is required to report that she is a US resident and provide the SSN. However, I would recommend that you contact your CPA and CA and seek professional guidance about its effect on Indian and US taxes. Thanks.

  77. SK says:

    Hi

    Thanks for this great post and your prompt replies to all of these queries. I have one question myself.

    I am resident of Canada since 2012. I have been maintaining saving bank account and few FDs in India. They are not NRE or NRO account. Each time I ask from my banker to convert those to NRE or NRO accounts he told me that U have to come to India to do that and I never got a chance to do that. So they are normal accounts still.

    I have been paying taxes to interest earned to India and have also been declaring that income in Canada and getting tax credit from Canada for tax paid in India.

    Basically I have been doing everything by the book except my bank account status in India is still normal and is not NRE or NRO.

    Now bank is asking me to fill FATCA/CRS form. So, that raise me a worrisome question that “Am I in trouble just because my bank account status in India is still normal and is not NRE and NRO”?

    Please advice.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. I don’t think a physical presence is required for resident to NRO; however, it would depend on the bank. I would recommend you have a documentary evidence (email from bank) of your communication, just in case.
      2. As you have reported the Indian account in your Canada and reporting the income in Indian in your tax return in Canada, I think you are okay. FATCA/CRS is for information exchange and for better compliance so now, the bank manager would not insist on your physical presence as an NRI is not allowed under FEMA to maintain a resident account. Thanks.

      • SK says:

        Thanks for your response Jigar.

        After reading your response one more question poped up in my head.

        I didn’t report my Canadian income to India as it was not taxable in India. My account told me since I am tax resident of canada and my income is from Canada I just need to declare that to Canada only and pay taxes to Canada on that. And also told me to declare only interest income in india as it was occurred in India.

        So in short I reported my Indian income to Canada because I was tax resident of Canada. But I didn’t declare my Canadian income to India as my Indian accountant told me that it was not required, since I was not tax resident of India.

        Did I do something wrong here ?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          This is fine as Only Ordinary Residents of India are required to report global income. For NRIs, only Indian income is taxable in India. As you are an NRI in India, only income from India would be taxable in your case. Thanks.

          • SK says:

            Thanks Jigar. You rock bud.

          • SK says:

            One more question Jigar Ji, sorry for the trouble.

            Can FD’s be converted into NRO account as well? Will there be any trouble if I convert my FD accounts to NRO now?

            If I convert my account to NRO account will there be any trouble in transferring money from my NRO account to my account in Canada?

            Thanks in advance.

          • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

            I think so. I don’t see any problem in changing account from resident to NRO. However, for remitting funds from NRO to Canada, a CA certificate may be requried. Please contact your bank and CA. Thanks.

  78. N Dwivedi says:

    Dear Mr. Jigar,

    Thank you so much for posting such valuable information on your website.

    I am a US citizen with NRE and NRO account at ICICI and they are asking for FATCA.
    If I have an EIN in US as a sole proprietor, can that be used in ICICI FATCA instead of Social Security number which may lead to identity theft? In US one is allowed to file taxes with EIN or SSN. Please advise.

    Also, do banks report only NRE or they report NRO also? Is there a limit on NRO balance BEFORE it is reported to IRS? NRO already deducts 30 or 40 percent tax.

    Lastly, if I send the NRE funds to sister as a gift, before December 31, 2016 or transfer some amount to NRO and the balance of NRE account is comes below 50,000USD, would that be reported to IRS?

    Please advise me.
    Thank you so much.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. If you have invested as a sole proprietor i.e. in the name of the company, you may give EIN. However, I would think you would have invested in a personal capacity so I would think SSN would be required to be provided.
      2. Bank would report all the accounts. They will report both the balance and the income. While NRO deducts TDS, you would need to report the income in your US tax return and claim the tax deducted as foreign tax credit.
      4. As the FATCA is effective from June 30, 2014, I think it will be reported. Thanks.

  79. Rahul K Pandey says:

    Dear Sir,

    I am having Home Loan account with HDFC LTD from past 3 years.

    Now, I would like to link my SBI Life Insurance Policy to my existing HDFC Home Loan and further would like to assign my Life Insurance Policy to HDFC LTD.
    In this regard, I have being asked by my insurance company (referred hereby as SBI Life Insurance) to furnish Foreign Account Tax Compliance Act (FATCA) – Common Reporting Standard (CRS) Entities (Non- Individuals) details of the assignee (referred hereby as HDFC Ltd) to whom I would like to assign my life insurance policy.

    I have submitted the application in writing to HDFC LTD. and requested them to furnish the information. But HDFC Ltd. embarrassed in providing the FATCA-CRS information by alleging that “HDFC LTD. is a non-banking finance company engaged in the business of extending housing loans and they do not hold any bank account of the customer”.

    However, HDFC LTD. has already endorsed my “Absolute Assignment Form” of SBI Life Insurance Policy in this regard.

    1. What is next step I should take when HDFC LTD. decline to furnish FATCA-CRS information?
    2. Who are the regulatory and monitoring agencies in India to whom I can approach in this regard?

    I would highly appreciate your reply.

    Thank You!
    Rahul K Pandey
    Mob: +91-986-765-1391

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would recommend to contact relationship managers of both SBI Life and HDFC Ltd. and get a common ground to find a solution. Three of you needs to sit together and find a solution. Every institute has their own internal requirements and procedures. The rules are not consistent and every institute may or may not comply with FATCA i.e. they can be Participating FFI, non-participating FFI, excepted FFI or deemed compliant FFI and rules/requirement may differ. Thanks.

  80. Sasikumar says:

    Dear sir,
    I am working saudi arabia since 2002. i am having NRE account in SBI since 2002 and having balance in NRE savings and FD is 63Lks. today bank send me an email for filling CDS form. (Annexure 1-A-CRS and Annexure 1-B-CRS). In saudi arabia there is no income tax system. we are using Iqama as id proof for sending money to india. i am always sending money to my NRE account only. what type of information i can provide in the CDS form. i am blank for this. kindly assist me. Also I am having savings account in IDBI bank and Joind account with my Wife in ICICI bank. This both accounts are using local expenses for my parents and wife. Also very less transaction. This domestic savings account need to be changed to NRO? if yes, when i have to do? Please assist me.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS is now a part of updated KYC – Know Your Customer process and everyone would eventually have to do the same. In your case, you may provide the Iqama number in the CRS declaration. Thanks.

    • Ahriff Sheriff. S says:

      Dear Mr. Sasi Kumar,

      I have received an email from my bank asking for FATCA and CRS form. What you have did on it? kindly advise. Do i have to click yes and declare my iqama ID under Tax Resident Declaration?

  81. Rajorshi says:

    Good day sir,

    I have been working in merchant navy for last 3years and have nri account in SBI
    I have received FACTA letter from bank. As i am not a resident of any country other than india as i work on ships worldwide what details i have to fill in the form about my country of residance other than india?
    I also got that letter after 2months as the ship was at sea and no mails can be received at sea. Please suggest

    Regards
    Rajorshi

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You would inform the bank of the same and that you are not a resident of any other country and explain in the form. No need to worry about the delay. Thanks.

  82. Ramesh says:

    Hello Jigar,

    To save your time, I have tried to put my Situation as concisely as possible below:

    1) I left holland and came back to India in 2012 but my NRE FD continued till April, 2016!

    2) In April 2016, I closed all my NRE/NRO accounts, (out of fear of CRS/FATCA) but did not close my Holland account till Sept 2016, which was almost empty anyway since 2015.

    3) While filling the tax returns in India for 2012-2016, do I need to pay taxes on my NRE FDs? (because I was living in India during these years?)

    Your advice will really help!

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Technically, yYour NRE FD interest would become taxable on your permanent return to India. I would suggest you to contact your CA and seek his advice.
      2. I would think you would have file your Indian tax returns from 2012-14 as you are only allowed 2 years to file your tax return i.e. now you can file tax returns for FY14-15 and 15-16 only. Thanks.

  83. Dhruv says:

    Dear Sir,
    I received a FACTA enquiry form from SBI , although I am not a U.S citizen but living in Singapore.
    Thank

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS is a part of new KYC requirement and will be sent to ALL the account holders. As a resident of Singapore, CRS will apply to you. Thanks.

  84. Dear CA Mr. Patel

    At the outset, thanks so much for contributing this piece. It sheds meaningful light on FATCA compliance, which can be quite complex. In light of this, I have a scenario for your analysis:

    I run a private limited company in India where we own licenses to several video games. These video games are used by a telecom player in India on an gaming app to engage their users, for which they pay us.

    Here is the complex part. They do not pay us directly. All payments flow to us through their platform partner, which a company in the US.

    Now when we are raising an invoice to this US-based company, they have asked us to fill the appropriate tax form (my guess is W-8BEN-E). They aren’t sure if they need to withhold any taxes and hence want to withold 30% conservatively. Is that the correct position to assume or is there a way to avoid such a high witholding?

    Once again, I thank you for sharing your experiences and shall regard your opinion.

    Thanks
    Gaurav

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. The withholding rate would depend on the nature of payment. I would recommend you to consult your CPA in USA for the guidance.
      2. If there is a withholding, you would be able to take the credit when you file the US tax return and get refund. Else, when you file the Indian tax return, you would be able to claim the same as foreign tax credit in your return. It works in the same way as TDS in India. Thanks.

  85. Jebin says:

    Hello Sir

    Thanks a ton for the information. I am an Indian working in Saudi Arabia since Arpil 2016. I opened an NRI account in SBI to transfer my funds from Saudi. Does it apply to me as well or only people working in US? Also kindly guide me through the procedure as the Bank did not give proper details.

    Thanks a lot

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS is not part of updated KYC and would apply to EVERYONE. You would need to update bank about change in residential status and provide the tax ID of your country of residence. I think Saudi Arabia does not have any taxes so you would provide the resident permit number a.k.a. Iqama number. Thanks.

  86. Arshad Ansari says:

    Dear Sir,
    I am living in Qatar since last 10 year and i am NRI in India, filing ITR in India.
    As per Qatar Law, resident include permanent home in Qatar, i donot fulfill these requirement.
    Also i am not covered by any tax law in qatar and Qatar govt will enter into agreement by next year.
    So what should i fill in the column tax residence country.

    Highly appreciate your reply.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The definition is to be construed as tax resident and not immigration resident. As you have been living in Qatar, you are a tax resident of Qatar and would need to declare as such. You may also need to show your resident ID as TIN – Tax ID Number. Thanks.

  87. Praveen says:

    Hello Jigar,

    Thanks for helping out and getting back to everyone.

    I have the following questions when one become an NRI:

    1. Mutual Fund Investments in India: Since this a pooled investment vehicle. Is tax payable to IRS even when the mutual fund units are not redeemed on annual NAV appreciation end of the respective calendar year? If this is true, is there a way to legally avoid paying tax on the annual notional gain on Indian mutual funds in US?. I do want to pay actual tax on capital gains when the units are actually sold not on notional annual NAV appreciation.
    2. Investment into individual stocks in India: Is this better than mutual funds. Does tax liability arise only on sale of the stocks instead of notional gain as in the case of mutual funds?
    3. Are ETFs treated as mutual funds or individual stocks for tax treatment in US if so would it make sense to redeem from mutual funds and invest in Sensex/Nifty index ETFs?
    4. I have EPF in India which I plan not to withdraw if I become a NRI – How will the EPF annual returns be taxed in US. since EPF is a Indian government product can this be excluded in the investment declaration( 8938 ) as well as FBAR?
    5. Legally how many years of record I need to maintain to satisfy IRS requirements once I become a NRI?

    Appreciate your help!
    Thanks,
    Praveen

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You have few options how you want to treat your MF investment in India. Paying tax on unrealized gain is the most beneficial. if you decide to pay tax on sale of MF (e.g. after 4 years of purchase), the gain is to be considered for 4 years and not of the year in sale so you would need to revise last 3 years tax return and pay tax and interest, which could be expensive and could complicate your compliance / tax return.
      2. Capital gain is on sale for Shares investment.
      3. ETFs are also considered as PFIC – investment in Passive Foreign Investment Company and would have treatment similar to MF.
      4. As EPF gives your interest, you may add the interest portion as income in USA.
      5. I would think 7 years including current year. I would keep 10 years just in case. Thanks.

  88. Slim Raymond says:

    Dear Mr. Patel,

    I am a Canadian Citizen of Indian origin. I have two accounts, NRE and NRO in India. As part of Know Your Customer requirement the bank is asking me for Social Security Number. I am not sure why they would require my Canadian Social Security Number. I have no income in India and the only income is some dividends from shares of a public sector company in India. The taxes from these dividends are deducted at source.

    I am not sure if I should provide the SSN as it is very sensitive information that could easily lead to identity theft. The Government of Canada was strict warnings not to share SSN. Please advise.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      It is part of new FATCA/CRS declaration so that countries would share data about investment and income among other countries. You Tax ID would be required. you may request a Tax ID number. If not, you would need to give the same to the bank. Thanks.

  89. mahesh says:

    Dear Mr Jigar,
    I am Australian citizen and maintain NRE account at SBI. i have been asked to fill in CRS form only. I regularly send money to my parent in India by transferring funds from NRE account. The funds transferred from Australia are from my savings here. I did earn small amount of interest on NRE account ( below 1 lakh). Do i need to declare the interest in my tax return in Australia? Also how the information on my NRE account will be shared with Australian Tax Office.
    Thanks in Advance.
    Mahesh

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes, FATCA/CRS is now part of revised KYC guidelines. Your interest income in NRE account would be shares with Australia as a part of the MCAA agreement signed by both India and Australia. Thanks.

  90. Adi says:

    Hi Jigar,
    I moved to USA on Nov1, 2015. I filed as resident for US taxation for 2015 (with minimum 31 days in 2015 in USA and counting following years # days with 183 days at least).
    My doubt is – for India taxes – I am resident for 2015 as well as resident for US in 2015. My family was here in US with me since Nov 2015 and I do not own any property in India.
    1) Do I have to pay taxes in India for my US income during Nov-Dec 2015
    2) As per article 4 of DTAA . I am resident in both countries but finally which country I will be called resident as for this common period?
    3) In case- I do not have to pay taxes in India; how do I disclose my US bank account in India tax filing

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. If you move on Nov 1, 2015 for the first time, I am not sure how you calculcate 183 days in preceding years as you have not stayed in USA in 2014 or 2013 or 2012 unless you moved as a greencard holder.
      2. You are an Ordinary Resident for Indian tax purpose so you would need to include your US salary in your Indian tax return. Also, you would report your income from Nov-Mar ’16 in India. Ofcourse, if you have paid tax in USA, you would be able claim the same as a Tax relief in your Indian tax return
      3. If no greencard, I think you would not be a resident of USA.
      4. You would need to do pay tax as well as report all foreign accounts in your Indian tax return. Thanks.

  91. Mysore says:

    I am an NRI. I have a Resident demat account that I really wanted to convert to PIS account. However, I find the paperwork and procedures so cumbersome and time consuming that I just gave up. Wish government has simplified the process. Not sure why a simple declaration and submission of proof of NRI address/work permit is not sufficient to convert account to PIS.
    My question is – what is the expected penalty for non conversion of Resident Demat account to PIS account. I am thinking I should just pay the penalty rather than going thru all the hassles so long as paying the penalty amount itself is not a hassle in itself.
    Please advise as to what are the consequences and quantum of monetary penalty
    Thanks
    Mysore

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The conversion from resident to PIS account is not simple as Demat-PIS needs to be linked be NRO-PIS account with bank and NRO savings account with the bank. It is used by RBI to track investments by NRIs as there is a limit for NRI/ foreign ownership in a company. Thanks.

  92. Sir

    1. There have been some bank account which have not been reported over the last few years , but with very small amounts. For example 300 rupees of yearly interest ( tax 11 to 12 dollars at 25 percent). And in another account case an yearly income of 50 rupees with tax liability less than a dollar.

    2. But what if the tax liability would still be zero, even if the above said unreported income is included ?

    3. Will the IRS allow to amend the tax returns in a case like above even if for years more than 3 years back ? Infact for returns belonging to years 5 to 7 years back ?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Yes, if you have been filing FBAR and FATCA forms, you would need to include all your accounts. Technically, you would need to amend the forms/returns. Instead, you may also want to close those account. Thanks.

  93. Yogesh Ghatkar says:

    Dear Sir,

    Thank you for sharing the article.
    – DCB bank is asking for FATCA deceleration while Saving Bank account closure

    I am Indian Resident and a Savings Bank Account holder. With no connection to any Foreign country or income. Is it mandatory to submit FATCA deceleration while Saving Bank account closure ?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes. Now FATCA/CRS is a part of revised KYC procedures and is required. If you have no foreign connection – not a resident of any country, it would be very quick and easy. Thanks.

  94. BHARATI says:

    I have family friend who is a US green card holder but due to old mother’s health and family problem he was unable to settle immediately in US and still unable to stay 180 days continusly in US. Before getting US green card he was an NRI working outside India for 17 years. Now he stays more in India due to mother and files return in India. He is retired at the age of 54 and now he is 62. He goes to US twice a year to maintain his green card since he finally wants to settle there. He has a salary account in US when he was working which has some funds when he left the job and maintained it for his expense when he visits US. He has no income other than interest on his savings. What is your advise on his account in US

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      He is a resident of India for income tax purposes and need to report his worldwide income in India. He is allowed to maintain his accounts and investments in USA; however, he would report his foreign assets in his Indian tax return. Also, he is not allowed to maintain NRE account in India. Also, as a greencard holder, he is also a US resident and need to report worldwide income in USA. He will get the credit for taxes paid in one country in the other country. I would recommend to contact a CA/CPA/financial advisor for effectively managing funds based on US and Indian tax laws. Thanks.

  95. Kia says:

    Mr.Jigar Patel – Please give your expert opinion on the below scenario:

    1. Person XYZ a USA citizen living in India, filed tax return, and the total tax payable is zero.

    2. Inadvertently he forgot to include a new bank account in FBAR as well as 8938, and also did include the interest income from the account in the tax returns.

    3. The said interest income is 1000 rupees.

    4. But even if the said 1000 rupees is added to the respective years tax returns, the tax payable will still be zero.

    5. Also note the additional fact that for the same year, the interest income for one of the declared savings account was overstated by 20,000 rupees i.e. interest income
    was overstated by 20,000 rupees

    While it is true that a bank account was not mentioned in FBAR, 8938 and interest income of Rs.1000 from the account was not reported in the tax returns, the tax payable

    will still remain zero or in other words will not change.

    Questions:

    1. What should Mr.XYZ do ?
    2. How will the IRS look at this scenario ( while some income has not bee reported, there is no underpayment of taxes even if you add the under reported income ) ?
    3. Will the IRS allow to amend the tax returns of a past year, in this kind of scenario ?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Please consult your CPA in USA.
      2. Unless tax return is amended with correct amount, IRS would not know there is over reporting of income in one account. As mentioned, contact your CPA (#1).
      3. I would think amendment of tax return is allowed. See #1. Thanks.

  96. Akshay says:

    Mr. Patel, Thanks for writing this blog on FATCA. It is very informative.
    I have few questions regarding FATCA filing:
    1) The field for filling Networth in INR: Is it correct to calculate the net worth by: bank balance + MF value + equity value on a particular date?
    2) Do i need to add LIC policy sum assured value as well?
    3) For the field: Is your Country of Tax Residency other than India -> if i am on H4 visa in US, my answer should be Yes, right?

    I would really appreciate if you can answer above queries.

    Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You may just give your annual income. No need to give correct networth. It is optional. Only income and/or networth is required.
      2. Yes, I would think so as you are treating LIC as an investment and it is part of your assets/networth. However, please see #1 above.
      3. Yes, as you are living in USA and filing 1040 form as Married Filing Jointly. Thanks.

  97. Nandakishor Yaragatti says:

    Dear Sir,

    Thank you for sharing the article.

    Please advice me, following is the situation
    I moved to US in July 2015.

    I have already 2015 filed income tax returns for 2015 in US.
    I have not submitted FBAR for 2016 and form 8938.
    Should i file a amended return and file FBAR and form 8938.

    I have not file my IT returns in India for April 2015 to March 2016. Should i file it now?

    I have axis bank account in india, wherein total credit was around 13,00,000 INR from Jan 2015 to December 2015.

    Should i request the axis bank to convert my account NRI?/required

    I have 30,886.24 INR in AXIS LONG TERM EQUITY FUND – GROWTH, which is locked for 3 years and i did not do any SIP in 2015. How should i deal with this?

    I made LIC retirement plan premium payments till Sept 2015(Only one payment through US source of income), but after that could not do the same, because of the financial issues.

    Dumped all the indian shares total worth of INR 85,000. Lost arount 20,000 INR. in November 2015.

    Bought INR 12,000 worth of shares in BSE, India in December 2015.

    I have been asked to submit FATCA/CRS self Certification from SBI Capital Securities, where in I have no stocks.

    Please let me know what should i submit under Country of tax residency:
    a) Any other country.
    b) India and other country.
    c) Only India.

    Also I have been asked to submit FATCA/CRS self Certification from Sharekhan, wherein i have 10,000 INR worth of shares.

    So should i declare the tax residency of both US and India.

    And also it asks me to accept that i am not resident of US or a US person.

    Please provide me your valuable suggestion.

    Thanks,
    Nandakishor

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Yes, I would think you need to file your tax return and any other forms that you have not filed. I would recommend you to consult your CPA for the same.
      2. For Indian tax return, you would need to file tax return only if your income in India is more than 250,000.
      3. You can not withdraw ELSS fund so you would keep the investments in the Axis LT EQ fund.
      4. I don;t think your financial assets is more than $10000 (Rs. 650000), so you are not required to file FBAR/FATCA.
      5. Currently, you are a tax resident of USA. You are not a resident of India.
      6. See 4. I would not recommend lying as it can be evident from your passport that you are a US resident for tax purpose. You may close the account as you only have Rs. 10000 worth of shares with them. Thanks.

  98. John Lee says:

    Hi, I am a US citizen and was just notified from a family member that I still have a bank account in a China BOC account where it is over $50,000. I forgot about this as I was working with a family business about 10 years ago when I created the account as I was a foreigner and was able to transfer money overseas easier.

    I am ready to transfer the funds back to my family members who the money belongs in the first place. As Ive never filed an FBAR (and have no other accounts overseas), would closing the bank account now in 2016 cause more problems than leaving it? As I do not intend on filing retroactive FBARs. I dont think Ive received a W-9 yet either. Thanks in advance for the advice.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      If you have not reported the account and do not intend to amend your return or file FBAR, you may not want to be the owner of the account. Thanks.

  99. Binu George says:

    Dear Sir,
    I am a NRI staying in Kuwait on work visa since 2011. I am not paying any tax in Kuwait. I have a demat account with Sharekhan which is started in 2009 when I was working in India. I am still trading the shares through this account. Now I am instructed to submit FATCA/CRS delcaration by Sharekhan. what should I do?. I have only the income from my salary in Kuwait. your advise please..

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you have been staying in Kuwait since 2011, you are an NRI and need to inform your DP about your status. As an NRI, you are only allowed to invest in Indian stock market under PIS – Portfolio Investment Scheme of RBI. Thanks.

  100. Sundar says:

    Hello

    I have been in US on L1 visa for less than 3 months in 2015.
    I will be filing 2016 returns as resident.

    Should I be filing FATCA as US resident now or only after I filed my first US tax return as resident?

    regards
    Sundar

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As have been living in USA since Oct 2015 and plan to stay in USA for whole 2016, I think you are a US resident for tax purpose and you need to declare accordingly. Thanks.

  101. venkatesh says:

    Hello Patel,
    I have invested in some stocks through SBICAP securities. I am an Indian, was in India till 5th August 2016, recently moved to Kuwait for work purpose. As you know, no tax is there here and moreover I haven’t got any civil id here yet. So in my case please suggest what would be my country of tax residence.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Technically, your country of tax residence would still be India. Only after 6 months of stay in Kuwait, your country of tax residence would be Kuwait. Thanks.

  102. Ashin says:

    Hello sir,

    Thank you so much for this informative article on FATCA. Excellent write-up! Found this while looking for information to assist her with her current situation.
    My close cousin is a NRI based out of Chicago, USA (good to know that you were at Booth) and has been there for the past 8 years. I had a couple of questions:
    1. She filed her F-Bar yesterday – 23rd August 2016 which is well past the last date of filing – 30th June 2016. Would she have to pay any penalties due to this delay?
    2. She had investments (debt funds) before FATCA become mandatory for any investments (around Jan 2015 I think so), so she had moved the investments to her father’s name. Would that cause her to do any reporting?
    3. Would her dad need to file any FATCA related documentation if he is doing investments (MF’s, shares etc.) – from the money she had ‘gifted’ to him?
    4. If and when she decides to repatriate that ‘invested money’ back to USA, would she have to pay anything apart from ‘gift taxes’ (at 20% I think so ?)

    Thank you so much. Keep up the good work!

    Regards,
    Ashin

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. I hope not. Not know for sure.
      2. FATCA requirement has been effective since Financial year 2011 and FBAR requirement is very old. Only India and other countries will start reporting from June 30, 2014.
      3. No if he is not a US resident. Technically, she need to report to IRS the gift amount.
      4. It is not her money anymore as she has already gifted. Thanks.

      • Ashin says:

        Great! Thank you so much Jigar!

      • Ashin says:

        Thank you so much for your time on answering these questions. My cousin is very grateful. We both wanted a clarification on the last question –

        4. If and when she decides to repatriate that ‘invested money’ back to USA from her dad as a gift, would she have to pay anything apart from ‘gift taxes’ (at 20% I think so ?) if it is above the annual limit ?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          Gift tax is on giver as per US tax laws and not on receiver. Any foreign gift is not taxable in USA so she would not have to pay any gift tax for gift from non-US resident (Indian) father. However, IRS needs to be informed. There is no gift tax limit for receiving gift. Thanks.

  103. Lily says:

    Hi
    I am on H4 visa in USA. Not working. However I have invested some amount in stock market with the money that my husband gives me. Now I have received email for FATCA Declaration from my Bank.
    1. In the FATCA declaration form, what would be my address for tax residence? USA address or India address?

    2. In the criteria of whether Tax resident of any country other than India, Should my answer be yes or no? I am not paying any tax in USA as I am not working here.

    Thanks
    Lily

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. As you have been living in USA, you are a US resident. You can give both addresses.
      2. You are a tax resident of USA as you live in USA and file the tax return 1040 as US resident as married filing jointly. Thanks.

  104. Sameer shah says:

    Hello sir,
    I was NRI in China for 2 years. Thn I opened trading account for shares in India under nro. Now I m bck in India since April n working in India with Indian salary and TDs also applies to me. Do I hv to fill FATCA as NRI or Indian citizen ?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      If you do not plan to leave India and you have moved back with an intention to stay permanently, you are an Indian resident under FEMA. And, you are not allowed to have NRO-PIS but just resident account. The question is not whether you are an NRI in India, the question is whether you can be claimed as a resident of any country other than India as per their tax residency requirements. If you are considered also as a resident of China, you would be both resident of India and resident of China. Thanks.

  105. Suresh says:

    I am in US on H1B visa for last 3.5 yrs. Recently i got a requst from CAMS to fill out the FACTA. I don’t have NRE & NRO accounts (I have not converted my salary/savings account to an NRO account yet.) and i directly transfer the amount to my Indian savings account.I have few deposit in INdia and it is not declrared in US tax filing. Currently am investing small amount of mutual fund SIP through that.

    Can you help me for my below questions:

    1. After submitting FATCA, is any impact for my invest in INdia?

    2. Whether they deducted any tax for my MF profits?

    3. When i filling in USA whether i need mention my indian investment?

    Please clarify.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Yes
      2. Yes (only if the income is taxable – No TDS if exempt income i.e. LTCG on sale of equity mutual fund)
      3. Yes
      Thanks.

  106. Ram says:

    hi, iam working in china from past 5 years. holding SBI domestic account and Kotak NRI account & Zerodha indian resident Trading account. Here i dont have TIN as iam below the slab line, i used to transfer funds through western union to my SBI domestic account. do i need to fill FATCA? pls suggest how to do

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Everyone needs to fill FATCA. It is now part of updated KYC requirement.
      2.You are an NRI. So, you need to convert your resident account as NRO, inform Zerotha and change the account to NRO-PIS. Also, you would need to provide any Chinese ID – Tax ID or state ID or even resident ID or resident visa number, anything that verify that you are a Chinese resident for tax purpose. Thanks.

  107. Abhisek says:

    Hi Mr. Patel,

    I am here in US for less than a year. I have filed the tax return under non-resident category. I also have mutual fund investment in India which was started before I came to US (the SIP is continuing) and total investment is way below the threshold limit of $50000. Now, the mutual fund house has asked me to fill up FATCA details. So, now my question is if I fill up FATCA details, what will happen to the investments? Also, was it wrong to continue the SIP in mutual fund since I came to US?
    Best

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You can continue investing in SIP. However, I would advise you to complete the FATCA detail as also a US resident because you would be resident for the year 2016-17. After submitting FATCA, the MF house may stop SIP. It would depend on the MF house. Thanks.

  108. Anil says:

    Thank you for your eye-openers ! Pl advise on my predicament. Am a GC Holder since 09/14. Have been filing IRS returns,FBAR/FATCA every year.BUT, I have hardly stayed in US for more than 45 days/year since & have been in India all through the rest.Have been banking with Citibank India since 18 years but when I wanted to open a demat a/c with them y’d, they saw my application wherein I had to give my temp US address & SS# in the form, & they flatly refused saying I am not an Indian Resident,that I need to secure RBI permission for PIS to open the demat a/c & purchase securities ! Why couldn’t they consider me as an ‘Indian Resident’ & open the a/c ? Your advise Pl ? Thanks in advance.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You are an Indian resident as per RBI and IT act. However, you are also a US resident. I think Citibank do not provide NRO demat services to US residents. That is why they declined. Please contact another broker/bank. Thanks.

  109. Abhishek says:

    I am in US on H1B via for last 3 years . Does that make me a US person ? I have both NRE and NRO Accounts with lots of FD’s. On NRE Accounts I am paying taxes in US on all income as it was not taxed in INDIA but I have not declared my NRO Accounts to IRS as I was paying taxes in India . Does that make me a violator ? Recently I got a request from Bank for both my Accounts to fill out the FACTA and I dont want to do so as IRS may levy penalties on me for NRE Account. What if I don’t fill out the FACTA ? Will my account be closed by my bank after warnings ?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. The year since when you have been filing 1040 and not 1040NR, you are a US resident.
      2. Yes, you need to include both interest in your income. While you may not have to pay additional tax as TDS @ 30.9% would have been deducted. However if you have filed tax return and claim refund, you would have to pay tax in USA. FBAR requirement would also apply. I suggest you contact your CPA for US compliance and us for Indian investments/reporting. Thanks.

  110. Manjula Jetpoul says:

    I have an NRO account in ICICI bank and have two fixed deposit of 31lakhs and 7 lakhs
    I am working on EAD pending I-485 I might get my green card within a month right now I am NRI. I got an email form ICICI to fill up FATCA/CRS declaration form do I have to fill up this form and I am not reporting anything in my tax returns in USA will there be a problem I file my taxes combined with my husband. Once I get the green card do I have to pay taxes in USA

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      As you are a resident of USA for tax purpose, you need to report your Indian income in your 1040. As you have been filing 1040, you are a US resident and are obligated to report Indian income. Immigration status is not relevant for Income Tax. You need to plan your investments. Please consult your CPA or us. Thanks.

  111. A Rajkishore says:

    In 1998 I was involved in an accident. I was paid £40K as a compensation for my long-term disability. The fund was deposited in NRE account and any interest accrued was used to pay debts as I was unemployed for two years as a result of the accident. Later it was invested in MF and Shares. During 2008-2014 the investment saw a huge loss and now made a moderate gain after many sell and purchase of shares. However, the money brought from UK has depreciated by 40% in value due to depreciating rupee value.

    Where do I stand?
    How capital gain is calculated? does it take in to account depreciating currency (so my question is at the time of investment GBP 1 = INR 69.70. Now, it is INR 89.00. If calculate the value of my investment now, although in rupees terms it has gained by 30%, converting back in GBP shows a moderate gain. How will I be taxed.

    Am I going to be taxed on compensation amount.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Can’t advise based on limited information. Need detailed information with dates and amount by year. Please consult your CA/CPA or us. Thanks.

  112. A Rajkishore says:

    I am maintaining NRE account since 2000. Does this get reported or only the accounts opened after 2014.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      All account with balance of $50,000 (32L+) as on June 30, 2014 would be reported. It does not matter when you opened the account. Thanks.

  113. Narendra Mistry says:

    Dear Jigarbhai. We were given Greencards In year 2000. Since than we are living in UK, as we are British Citizen. We were given the cards, as my wife has a sister in USA. Please inform us, (1) How long a card can be valid. We haven’t cancelled the cards.
    (2) If the cards are not valid, how can we apply for a new one, as we are thinking of coming to stay in USA. Please advice. You are doing a wonderful job. God Bless you.

  114. N M says:

    Thank you for the very useful write-up. I have been living in US for over 13 years and am currently holding a green card. I hold an NRE account (savings and FDs) with ICICI and I recently received notification to update FATCA / CRS for my account. I understand that I need to provide US Social Security Number, but I wanted to know how this information will be used. Would any income in my NRE account be reported to IRS? If so, how and when that happens and would I receive a copy of the information being published to IRS?

    Appreciate your response on this query,
    Thanks !!

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      All your income, including NRE, would be reported to IRS. The banks would report the financial information to the Income Tax department and then it will be shared with the IRS. I don’t think you would get a copy of what is being reported. Thanks.

      • N M says:

        Thank you very much for your reply. It would be ideal to receive copy of that information for cross checking purposes. I am comparing this with US banks requirements to provide a copy of the 1099-INT form to the consumer as well as IRS. I hope Indian banks would do something similar going forward, especially given that they are beginning to report the earnings to IT department and IRS.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          I sincerely hope so. In the meantime, you may ask the banks to provide the interest certificate for the calendar year. Thanks.

  115. Ajit says:

    In “gross annual income in INR” do I have to put only income arising in India or global income?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would think Global as it does not say only income in India. It helps them to determine if you can invest x amount or not. Thanks.

  116. Ravinder says:

    Excellent write up but I have a rather uncommon situation.

    I’m an Indian citizen, non-resident in India (both under FEMA and ITA), I make sure to keep my days of presence in India under the limits specified. I make money online and the income is all sourced outside India. All my money is paid into a Singapore bank account. I do have my Indian address as my mailing address on the Singapore bank account.

    I have some trouble with the fields on the FATCA form. It asks if I am tax resident in any other country apart form India. I said No. (I do not meet the requirements for tax residence in any country that I spend time in)

    It also asks me for my gross annual income in INR. Am I required to disclose this to the Indian government for any reason? It seems like an invasive question and unrelated to what the form should be asking. What is the law about this?

    In fact, most questions on most of these forms do not address my situation. They always assume that if you are not tax resident in India you are tax resident somewhere else (therefore you should have a tax number, visa, etc.)

    I do have some holdings of MFs in India which were created many years ago under NRE status. They continue to be held with no activity (no buying or selling). I make all my investments through overseas brokers.

    So:
    What should I fill under “residence”?
    What should I fill under gross annual income? (do I need to fill this accurately?)

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. I would think you would have a resident visa for one country. You may be considered as a resident of that country.
      2. You would need to provide gross annual income or your net wealth. It is a requirement.
      3. If you do not live in India, you are a NRI. Please note that if you have Indian passport and do not leave India for immigration or employment or business, you may be a resident under FEMA/IT. I think you may be a resident of one country. sometimes, you may be a resident for more than 1 countries as well. If you have a resident visa, you may be considered as a resident of that country. You would be the right person to know if you are a resident of any country or not. Please consult your advisor if needed.
      4. You just give a range for Gross annual income, e.g. 10-25L, 25-50L or 50L-1 Cr or 1-5 Cr or 5-10 Cr, etc. Thanks.

  117. Suresh says:

    Hello Mr. Patel,

    I’m an Australian citizen Indian born, I’ve been investing since 2011 on Lic policy worth a lot paying premium around 8 lakhs a year, Icici Prudential life policy around 15 lakhs a year and mutual funds around 80k a month.

    We do have a FD around 45 lakhs and 30 lakhs on my wife NRE account which is generating a good return to pay LIC insurance and we do add up to pay ICICI pru life and MF.

    I don’t have a PAN card I’ve submitted my KYC and my wife she gave her PAN card no and Australian TFN when she opened her MF few months back when we were on holidays in India.

    Know the bank wants to fill up a FATCA declaration form.

    What to do in this scenario?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS is now a part of updated KYC requirement and you would have to provide the same. I suggest you talk to your advisor about your life insurance – LIC / ICICI and other investments. It appears that you can do better investment planning and asset allocation for your investments with some help. Thanks.

  118. Aakash says:

    Hi Mr. Patel ,

    Can you help me in solving some queries :-

    1- I´am an India working as freelancer in Mexico from last 3 years .Holding an NRE Status .
    2- 20% of my salary ( around 1500 USD ) I recieves in local Mexicon currency ( Mexican PESO ).In local Mexico bank account.
    In this I pays tax ( around 19% ) to mexican g0vernment .
    3- Rest 80% of my salary + Reimburishment ( around 6000 USD ) I recieves in my Indian NRE Account .
    Which comes from companies headquarter in U.S .

    SO my question is that :-
    1- Do I need to pay tax in that 80% in INIDA ( which i recieves in NRE account ).
    2- DO I share that local taxation number in FATCA in which i gives the TAX in MEXICO .
    3- I have a NRE FD around 80 Lakh INR . DO I need to pay taxes on that .

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. My advise would be to take the salary in any country outside India and then remit to avoid any complications. Any income received or deemed to be received in India is taxable. If you receive outside India and remit, it is okay. If not, it would not be easy to convince the IT department and you will have to be ready for litigation (Appeal and Tribunal) and the result may not be in your favor. You can receive your salary in any exempt county and then remit.
      2. If you do as I suggest, there is no tax to be paid for salary or freelance consulting in India. also, interest on NRE FD is not taxable in India.
      3. As you live in Mexico, you would give Mexican tax ID number in FATCA/CRS declaration.
      4. You will need to check Mexican laws whether they tax foreign income and you may have to pay tax based on the tax laws in Mexico. Thanks.

  119. jyoti says:

    My friend is in canada from last 10 years and come to india every year for few months .from last 3 years he start filling the income tax return and he wrongly fill return as a resident of india, now what is the solution for this problem?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Ask him to fill the tax return as NRI in future. There is no tax benefit (except lower TDS rates) for filing as resident. As resident, he may not be able to claim interest on NRE FDs as exempt. Thanks.

  120. Amit says:

    I have a cousin who is a GC holder and an US NRI. She has a policy which she wants to surrender coz it was sold as an investment which it clearly isnt. The premiums were paid earlier through her resident account, however she will get the proceeds of approx 35 lacs in her NRO account.

    1. As per my understanding post reading your blogs etc she should declare this in her FBAR and FATCA filing, and while it is tax free here she may have to pay taxes on the same in US. Please clarify if this is correct

    Now she wants to invest these monies into open ended MFs. However the AMCs want a declaration that everytime a switch or fresh purchase happens she needs to be here. Basically she isnt being allowed to even do a normal SIP. How will her advisor take care of her asset allocation in this scenario. For eg if valuations are high like 2007 and she wants to switch into liquid to reinvest at lower levels later, how will sheanage to do that ? Can you throw some light in this aspect

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. A US resident would have to pay tax on any income in India. You would need to determine and calculate the income.
      2. There is no requirement of physical presence for investments in Mutual Funds in India. A lot of my clients are US residents and have been investing without much trouble. AMCs may have restrictions for US residents either not accepting or now allowing SIPs. However, there are some, who have been accepting investments including SIPs from US residents.
      3. Her advisor should now. If not, I suggest you change the advisor. Please contact us if any question. Thanks.

      • anoop says:

        Sir, could you please let me know which all AMCs accept investments/SIPs from US NRIs?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          The AMCs keep on changing and the requirement to accept US resients’ invesments may also differ. Provided you comply with their requirements, I think currently, you can invest in L&T, and Pramerica MF. Thanks.

  121. Sunny sharma says:

    I am a US citizen living in US for last 20 years. I file all my taxes here. I have some rental income in India from my real estate assets. Since my father manages all my indian income, he got my resident indian account opened in India. Though we are filing taxes on Indian income but have never reported that income in USA. What is the risk I am taking

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Risk is that the IRS finds out about your income or your bank accounts or your investments (made from rental income) and levy huge penalties. Thanks.

      • DsRao says:

        Mr.Jigar Patel – Not everyone has huge investments in India or high income, but everyone living in USA has atleast a few dollars i.e. a few hundreds to a couple of thousand from some joint family property. This money is usually used by parents for their or property maintenance. Infact parents pay a zero tax return on the name of their children, since the amount is not enough to attract any tax. What about such mundane normal beings ?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          The FBAR threshold is $10,000. So if you have few hundred or couple of thousands, you don’t have to worry. Anyway, while FBAR requirement is $10,000, the Indian government is sharing data of accounts where balance is more than $50,000. Thanks.

          • Reddy M says:

            Hi Patel – Thank you very much for providing such an intuitive information on FATCA/CRS. You mentioned that Indian banks will report only account where the balance is 50K USD. I am an NRI since 2003 and I have multiple NRE FDs each is 10 lac INR with ICICI. The total of all FDs will be more than 50K USD but as an individual FD they are less. In this case, each FD will have a separate account number, so I am wondering how my information will be shared with IRIS. Can you please clarify? Thanks!

          • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

            While the account number be different, it will be under same customer ID and I would think information about your account will be reported and shared. Thanks.

  122. Puneet Arora says:

    My mother is holding green card since 2005 but she lives in india. Her entire income is generated from indian assets She has never filed her taxes in US, now we are planning to surrender green card. Can we be penalized for past underreporting.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      If she surrenders, it may be okay. I know many people who have surrendered and no questions were asked. Thanks.

      • DsRao says:

        Mr.Jigar Patel

        In what circumstances do you opine that one needs to consider giving up green card or citizenship ?

        Citizenship or Green Card does not mean anything for a lot of people, who live outside of USA and have no ambition of returning or working in USA. It is mostly parents, whose children have settled in USA. They pay their taxes in India and must have seldom thought or knew of requirements to show the income in USA. Some others who are done with USA after living their for a length of time also fall into this category. For these folks a 10 year multi visit visa to USA might suffice just to visit their children, instead of being a GC holder or Citizen which seems to proving to be a real pain for no reason.

        If such people want to give up their GC or Citizenship, what are the repercussions, will they still be responsible for yesteryear unreported income if any ?

        DsRao

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          Only if you have substatial assets, you may want to return the greencard. If required, without greencard, you may not stay in USA for a continuous period of 6+ months. The returning of a greencard is a personal decision. I know many who have returned the greencard without much problem. If you don’t have much liability, I don’t think there would be any repercussions. Currently, IRS is interested in information with balance of $50,000+. Thanks.

  123. akash says:

    Hi Mr. Patel ,

    Can you help me in solving some queries :-

    1- I´am an India working as freelancer in Mexico from last 3 years .Holding an NRE Status .
    2- 20% of my salary ( around 1500 USD ) I recieves in local Mexicon currency ( Mexican PESO ).In local Mexico bank account. In this I pays tax ( around 19% ) to Mexican government .
    3- Rest 80% of my salary + Reimbursement ( around 6000 USD ) I receives in my Indian NRE Account . Which comes from companies headquarter in U.S .

    So my question is that :-
    1- Do I need to pay tax in that 80% in INDIA ( which i receives in NRE account ).
    2- DO I share that local taxation number in FATCA in which i gives the TAX in MEXICO .
    3- I have a NRE FD around 80 Lakh INR . DO I need to pay taxes on that .

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. It is a grey area. NRE account is considered as a foreign source income and is not taxed. However, any income received or accrued in India is taxable in India. As income is directly received in India, it may be taxable in India. To simplify, I would recommend you to have a bank account in USD with a bank in Mexico or USA and then transfer the money to India.
      2. It is not an option but is required to share your tax ID in Mexico.
      3. I am not familiar with Mexican tax laws. You would need to contact a CA/CPA in Mexico for the same. If Mexican resident has to pay tax on his global income, you would need to report and pay tax not only on interest but also on the salary income being directly credited to NRE account in India. Thanks.

  124. Deepak Kumar Gulati says:

    I am NRI , working in South Korea on Work permit (E7 visa, having Alien Residence Card of Korea). My salary, as desired by me, is paid by Korean Employer in 80% of component as USD to India in NRE/FCRA account and 20% component is paid in local Korean currency for living purpose. Employer borne the applicable Income Tax of Korea and deposit same to Korean Govt. I have invested NRE fund into NRE MF and made some NRE FDs. In addition I do the trading of equity thru NRI HDFC Sec Trading website and my Demat holding account (in HDFC Bank) is NRO Demat account based on Non Repatriate account. I have Indian Income thru House Rent, shares investment, NRO fund and file the Income Tax every year as NRI basis. My question is :
    1.) How to ensure the compliance to FACTA and CRS compliance. What actions I need to take for cpmpliance

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. I would recommend you to have a USD account in Korea and first credit the salary in that account and then transfer to NRE account.
      2. Please check if you are required to file tax return in Korea for your Indian income and/or make any declarations for Indian investments.
      3. Contact us if you have any question. Thanks.

  125. PJ says:

    I am working in the US with L1B visa and will continue there till Mar’18. I have not converted my salary/savings account to an NRO account yet. I receive my India salary in India and a per diem allowance in the US. My company pays the income tax on US income, India interests and dividends.
    Recently I have received an email to fill the FATCA/CRS form from CAMS. I have a few questions here -
    1. What is the time limit to fill the form.
    2. Should I get my savings accounts converted to NRO first?
    3. Should I de-link my savings & Demat account? I have a small amount of mutual fund SIP through that.
    4. Should I expect more emails requesting information once I fill the FATCA/CRS form with US residency status? What information should I keep handy?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. It would depend on the respective bank and would be indicated in the letter.
      2. It would not matter. As soon as you mention NRI, bank will ask you to do the same.
      3. You are allowed to invest in equity, MF and bank FD as NRI. Whether you want to keep or not to keep is a personal decision.
      4. This is a part of KYC requirement and I think it is a one time exercise. However, the bank would provide the information to Income tax of India, which in turn will report to IRS as per FATCA agreement. Thanks.

  126. Sanchit Jain says:

    One more thing, does a person receiving a consultancy income in India need to file FATCA declaration with the remitter? Does filing of W-8BEN-E mean withholding tax @ 30%?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA is only if foreign financial assets are more than $500000. I am not sure how it affect the consulting income. Any payment to NRI (whether US resident or resident of any other country) would attract TDS. As consulting income chargeable to tax as per slab, TDS @ maximum marginal rate of 30.9% will apply. Thanks.

  127. Sanchit Jain says:

    Thanks for the useful information..

    I would like to know that whether a US passport holder (by virtue of birth), though Indian holding OCI having salary income in India (though below taxable limit in US) still have to file his tax return in US?

  128. Seshadri K says:

    Sir
    My children residing in USA. Filing Tax returns there and giving details of their income in India. My doubt.
    If they file their It return in India for their income here, whther they have to pay any differential tax in USA for that income. As the income tax slabs change please clarify.also clarify the procedure to be followed if loss on income from house property is to be added.

    Seshadri

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Your children need to add their Indian income in their US returns. If they have paid any tax in India, they would get a credit. Also, for income from house property, I would assume that the loss is as a result of home loan. They may claim the home loan interest in their tax return if they are using itemized deduction. Please ask them to consult their CPA in USA. Thanks.

      • EQUITY2025 says:

        Hello Mr.Jigar Patel

        Loss from house property need not be only from home loan. It is very much possible that the expenses related to the house property ( repairs, salaries paid for employees to take care of the property, property taxes) put together might be much more than house property income. In india, one can only deduct 30% of the income as expenses, but it USA one can also show a loss in the above explained scenario. How to handle that scenario ? From the internet, some of the information read states that if there is no net income from a foreign house property, it need not be declared. Please comment.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          Please check with your CPA about how to declare your house property Income. Your understanding of repair/maintenance expense from income from house property in India is correct. Thanks.

  129. Sree says:

    I moved to USA last year. I had both equity as well as mutual fund SIPs with my broker. Can I continue invest in shares/SIP through my current trading account?. I heard the rules are different now and I cannot use the same. But I’m not getting a proper explanation from by broker and they are not giving an online option to open a new trading demat account. While leaving for USA, my bank converted my salary account (which was tied to my trading account) to NRO account and opened a new NRE account for me. I didnt purchase/sell any shares while in USA but my mutual fund SIPs still continue using the balance in my trading account. While I tried accessing the mutual fund section in my trading portal, I saw the FATCA declaration form, with the fields requested like you mentioned in the blog.

    1. I want to continue invest in equity at least. What are the legal ways to do that?
    2. Shall I keep the current trading/demat account dormant or close it? Do I need to stop the mutual fund SIPs also?
    3. What are the options to open a new account for investment. I’m OK with non-repatriate type since the investment is for long term.
    4. I cannot see option to support NRI trading in major players like Sharekhan, HDFC etc. Do you have any recommendation on this?

    Please advice. Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1-2. To invest legally, submit the FATCA declaration, update your KYC and invest in the mutual funds that accept investments from US based NRIs. Please inform your DP, bank, trader of your residential status and if allowed, invest through them.
      3. There is no need. you can invest from your current NRO / NRE account.
      4. I think they do not provide service to US based NRIs. In that case, you would need to open account with the firms that do. Thanks.

  130. Harshal Bajad says:

    Hello

    I am Indian resident, I don’t have any foreign assets or bank account in other countries but my some income was I received in my Indian bank was from USA as I am working as freelancer and I don’t have any fd or property where I invested the money but I received messages from my bank. Dear Customer,as per Income tax rules,FATCA/CRS declaration is mandatory in all accounts. Pls visit our branch to submit declaration for Acct XX6956 by 30-Jun so do I need to do the same.

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS is now a part of updated KYC requirement. As a remittance from USA has been credited in your account, it is assumed to be an account owned by a US person. If you don’t submit, it will be classified as such and reported to Income Tax department, which in turn will report to IRS. I would recommend you to comply with requirement and submit the FATCA/CRS declaration. Thanks.

      • Harshal Bajad says:

        Thanks for reply, do I need to pay some tax to USA for this payment? As I discussed this matter to my CA he said if you have more than 50 lakh transaction or if you have foreign assets or have nri/nre account then only I need to do the declaration. Can you please help me with this doubt. And I received 2-3 lakh fund in my savings account and few lakh in current account do I need to feel declaration for both account seperately.

        Thanks

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          As long as you include the income from US in your tax return, you are okay. As you don’t have foreign assets or income outside India, you are okay. Thanks.

        • Harshal Bajad says:

          Also I need to update one point that I am reciving this payment in bank account as inr not as usd there is middle entity freelance website that are doing foreign exchange and sending me money in inr.

          • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

            You just need to add the payment received as income in your tax return. Submit FATCA/CRS that you are not a resident of any country other than India. No more compliance required. Thanks.

  131. Kiran Reddy says:

    Please show some light on Green Card holders who settled in India from many years but still hold GC and have NRI/NRE accounts.
    1) Can renouncing GC at this time will help us
    2) Would we be still liable for past taxes not filed/reported in US global income in returns.
    3) Since US will not allow of re-entry there is no point of keeping GC, if renouncing helps.
    4) IF banks already informed as reportable account and US asks to pay taxes, do they impose penalties as well. Is there any clarity on penalties for amount in banks/immovable properties.
    5) What if we deny to pay penalties, since we live in India they can not come to catch us.
    6) Is there any documentation of taxes/penalties US IRS will impose
    7) What is due date that banks will inform US as reportable account

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You can not have both – on one hand you are telling Indian banks that you are an NRI and maintaining NRE FDs to generate taxfree return and on other hand you are also telling USA that you are not a resident of US and no need to pay tax. In reality, you are required to pay tax on NRE bank FD interest AND report your Indian assets/investments in USA and pay tax. Currently, you are breaking laws of both countries.
      2. If there is no point of keeping GC, please return the same. Inform banks that you are not an NRI, keep accounts as residents and pay tax in India. This is better way.
      3. I don’t want to speculate on what IRS can and would do. It would depend on how much money you have.
      4. Banks will report balances as of June 30, 2014 to IT in India, which in turn will report to IRS. The time deadline is different for accounts having less than $1million and more than $1 million.
      5. I suggest you seek professional help of your CPA or us. Thanks.

      • Kiran Reddy says:

        Thanks for your response.

        1) Is it the banks are supposed to inform CRS/CBDT/IRS by 30 June 2016 as reportable account.
        2) I do not think I can return GC in these 2 days left as I am not in my local city and do not have handy GC.
        3) Can I declare as non-US person in declaration form and send it to Bank in this two days so bank does not report to CRS/CBDT. In 1-2 weeks I plan to return GC
        4) Will I violate any laws if I declare as non-US person or not-a-NRI before I return GC at consulate.
        5) I hold around 55k lakh in NRE both savings/FD, not sure how India will impose taxes
        Please provide email so I can reach you.

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. I am not sure about their deadline. But I think it will be in 2016.
          2. It is your call.
          3. It may be considered as “fraud”, intentionally lying.
          4. I would think so as you are making a declaration and signing with date.
          5. Indian FEMA and Income Tax laws are very clear that you are not allowed to maintain NRE account after your return to India and the interest on NRE FD/savings is taxable from the day of your return. Thanks.

      • EQUITY2025 says:

        Thanks for your responses.

        In the context of the above question relating to those who are living outside USA and are either GC holders or citizens.

        1. How does giving up green card or citizenship help ? Especially for previous years. Please elaborate.

        2. In those cases where one of the spouses is not a US citizen, doest it help if all accounts are maintained only in the name of the spouse who is neither a GC holder nor a citizen ?

        3. You stated ” It would depend on how much money you have.”, what does it mean ?

        4. You have answered that it is the IT that will gather data from banks and report to IRS, but from some sources online looks like it is the RBI which will share all the data from the banks ?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          The advise is very subjective and would depend on the situation and circumstances and also how much risk the person is willing to take. I am giving various options. You may contact us for details. Thanks.

  132. M.rsrinivasan says:

    My daughter and son I law like be in newzealand.they have made investments in my Nadia to the tune of nearly 1.25 crores.when will reporting to newzealand commence.is this amount below the thresh hold limit.do they have to report all in me arising in ut f these investments to newzealand authorities.
    Kindly reply.will be grateful.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      For New Zealand or any other non-US countries, there is no threshold and all money is required to be reported. The reporting will be of balance as on Dec 31, 2015 and later years and would begin only in 2017 as banks and IT department needs about 1-2 years to gather the data. Thanks.

  133. Bhushan says:

    Hi,
    I am working in USA for last four years on H1B visa and have paid taxes every year. I have purchased home in India and invested some account in the stock market through mutual funds. I have following questions.
    1) Do I have to report the immovable assets such as home if I am not receiving any income ( ex. rent) from such investment?
    2) I am investing in the mutual funds through SIP. I have not received any income through this income though, do I need to report it?
    3) I transferred INR 22 Lac in 2013-2014 and received 2 lac interest ( NRO account) to buy home in August-2014. Do I need report this income if TDS was debited from my account?
    Do I need to file the declaration with indian bank? ( it has not been requested yet)
    Please advice.

    Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. No
      2. Investment in MF is considered as PFIC – Passive Foreign Investment Company and you may want to calculate the unrealized gain based on value of investments as on Dec. 31 and report the same.
      3. Yes. However, you can claim the Tax paid in India as foreign tax credit in your US tax return.
      4. Yes, bank would ask you to provide the FATCA/CRS declaration. If it has not been requested yet, they will request soon. Thanks.

      • Bhushan says:

        Hi Jigar,

        Thank you for your response. I have sub-question related to question 2 I asked in the above post.
        Do I have to pay income tax in USA for the calculated unrealized gains?
        If yes, then I will be taxed twice because Indian government will deduct taxes once I sell these mutual fund units. is that right?

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          Reporting unrealized gain is one way of reporting PFIC income and is most beneficial for investors. The reporting of PFIC varies and different CPAs may advise differently. Please consult your CPA. Also, you may or may not pay tax in India on selling MF. And, any tax paid in India can be claimed as foreign tax credit. Thanks.

  134. Amaresh says:

    I am a merchant navy officer with investment in Axis bank about Rs45 lacs in NR FD and Rs25lacs in MF.Have flat in joint name with wife in India.Do I have to fill upFATCA/CRS as I have email from them.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS is now part of an updated KYC requirements. So every person would have to eventually do that. Currently, in the first phase, all non-resident account holders are getting emails/communications. Thanks.

  135. naresh says:

    I am working in west african country Equatorial Guinea for the last 26 years. My company send the net salary to my indian NRE accounts, local taxations are been paid by my company and i dont receive any copy of those payments.
    So will i be taxed on my remittances? Will i need to show all my remittanecs in my ITR? As of now i declare income from my indian investments and pay taxes whenever applicable.
    Please clarify?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      The question is whether it is a remittance or an income. If you transfer funds from your account outside India to your NRE account, it is a remittance. If someone else transfers, it may not be a remittance and may be considered as income. I would recommend you to ask your employer to deposit in YOUR bank account outside India and then remit funds to Indian bank account. Also, you need to invest in such a way that you do not have to pay any tax. Indiam amazing tax laws allows earning tax free income in India for NRIs. Please contact us to know more. Thanks.

  136. Rozy says:

    Respected sir
    I m having one relative who are uk citizen and continuously receiving letters from state bank of India with regard to FATCA AND CRS.declaration. Sir I want to ask what if the person send the letter after signing it to the bank.india is sharing information with uk from now or it will start later .My relatives are having good amount of deposit with the bank and wanted to be clear on this matter that Whn it will be reported and if we want that our information must Nt be reported in our resident country uk what should we do .

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      For UK, actual sharing of data will start from 2017. However, the reporting would of the balance as on December 31, 2015 and later years. Indian Government has more than 1 year to implement FATCA/CRS requirement and gather required information. There are certain ways to clear up your affairs. Please contact/email us for details. Thanks.

  137. Jai says:

    I am Indian Citizen and have no foreign earned income. My son is working in the US and pays his taxes in the US. In my bank account I have included my son as a joint holder. There has been no transfer of any money from my son into my account. How would my account be considered under FATCA or CRS declaration?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I would recommend to remove your name as joint holder and keep him as a nominee only. Else, he would also be considered as a holder of the account and need to comply with US compliance and taxation requirements. Thanks.

  138. Vipul Patel says:

    Hello Mr. Jigar

    Thank you for sharing very good information to NRI’s..
    Y’day i was in BOB and they give me this FATCA-CRS form and asked me first country where i live and they searched their printed copy where all applicable countries are there but country where i live (Democratic Republic of Congo (Ex-Zaire)) is not there.. so i told them when DRC is not there then why you want me to fill this form… in this case do i have to fill FATCA-CRS form ?
    Secondly, i am living in D.R Congo since last 32 years and working in Pvt. Ltd company where all taxes related to employee are paid by employer we get only net salary.
    Please suggest what i have to do ?
    Most important is, since last year I am filing IT Returns for my immovable property rent income.

    • Vipul Patel says:

      I want to add that i am Permanent resident of D.R Congo.
      I spend almost 7-8 months in D.R C and rest of time in India, my family lives in India.

      • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

        It is okay, you are an NRI as you live in India for less than 6 months. Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. FATCA/CRS is for you to make a declaration. If you are from DRC, make a declaration as such with your Tax ID or any unique ID. As long as DRC is a recognized country, if they can’t find the name in their list, it is not your problem. You have fulfilled your responsibility.
      2. As an NRI, please maintain NRO account for depositing rental income. After payment of TDS/Tax, you can transfer funds into NRE account to save tax on interest income. Thanks.

  139. rohit upadhyay says:

    hello sir
    my brother sumit upadhyay is a non resident indian. he is worked in merchant navy and every year working above 182 days in ships and than came in india . he is not filed tax return in india because not applicable to him. so it is not tax resident in india. and also he is not paid tax in any other country. is it fatca crs applicable to him. pls let me know sir.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      FATCA/CRS is a declaration to be made to the bank and financial institution whether a person is a resident of a country outside India or not. It is now a part of the KYC (Know Your Customer) requirement and only a declaration and I think it will be sent to EVERYONE – resident and non residents, having saving/NRO account. If your brother is NOT a resident of any other country, make a declaration as such. Thanks.

  140. Venugopal says:

    Hi,

    Thank you for your effort in sharing the knowledge, you are a knowledge bank.

    I have few questions
    - We are US citizens. We have a ICICI Prudential life insurance policy with 5 years maturity with a lump sum pay out. We pay yearly payments, we are 2 years into it with 3 more payments. Do we have to report the amount now in FABR or when it matures in 3 years?
    - We have a Recurring joint deposit account with our parent, we deposit money in $ monthly converted to Rupees for our parent to draw if/as necessary. Since it has our name we have to report in FBAR. Is there a way to send money to this account and not report it in FBAR, I read in a thread to become a nominee instead.

    Thanks in advance.
    REgards,
    -Venu

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Yes, if the cash value (fund value or surrender value) is more than the threshold.
      2. If you are a joint holder, you need to report. Only when you become a nominee, there is no requirement to report. However, any transfer from your US account to your India account (where you are not a holder but a nominee) may be considered a “Gift” and Gift tax laws may apply. Thanks.

  141. Suja says:

    Hi Mr. Patel, I am bit confused here. We are already paying tax to US and we are sending the balance amount to NRE account. Then why do we need to pay tax again to US if our saving is =>$50000 in NRE account. My scenario is, I have deposited around 25 L INR in NRE savings account (no FD/RD/or any other investments.. just a savings NRE account). It would cross 30 L (equal or greater than $50000) soon. Would there by any tax on my savings in NRE Saving account from US side if I submit FATCA/CRS form? In my NRE account, already some taxes are taken from India for every quarter.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. Even if your balance is only $100 and you received interest of $10, it is an income and you need to report and pay tax on that income. While you have paid tax on the $100 in last year from your salary income, you would not have paid any tax on the interest income of $10.
      2. NRE accounts are tax free and there would be NO tax taken or deducted on NRE account.
      3. If you are filing FBAR (>$10000) or FATCA (>$50000) and including your interest income in your 1040, you would not have to worry. Thanks.

  142. B KHANNA says:

    Dear Mr Patel

    You are a brilliant accountant and it is obvious from your qualifications that you have lived and studied in the USA. I am sure your parents and grand parents must have advised you at that time that “You must have a place of your own in India-you must save for a rainy day and keep your savings in India”. The same advice was given to all of us. We left our country,our family and friends and came to the UK and worked hard. Any savings were deposited in India in NRE account over the years. I am sure you must have worked out the ways to resolve these problems and I want to contact you for taxation and financial planning.I am 74 year old and plan to retire in India. Please advise. Kind Regards- B KHANNA

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Please provide more details to your question. There are many ways for compliance and out advise would be very subjective to respective person. Please contact us if you want our professional advise. Thanks.

  143. Sanjib says:

    Dear Mr Patel,
    I returned to India from gulf in mid june 2015 . Converted my NRE account to a resident account in March 2016 . Now Bank is asking me to fill FATCA/CRS declarion form . I am now working in an indian company since july 2015 . How far it is applicable to me and how it affects an individual . Kindly let me know your opinion .
    Thanks and Regards
    Sanjib

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      You may give the FATCA/CRS declaration with your residential status as resident. It is not mandatory for all financial or investments. Thanks.

  144. Bina says:

    Dear Sir,
    I invest 82 laks in FDS as a NRI. ICICI requested to Fill DECLARATION? Should I do it. I am an UK resident for taxes.

    Thanks

    Bina

    • Bina says:

      I just wanted to add I am not an USA citizen or have any connection with USA.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I think it is required. ICICI already knows that you are a UK resident as you have FD as NRI. ICICI bank would report to the income tax department of your account balance/income and then will be reported to the UK tax authority (HMRC). Thanks.

  145. Susheela says:

    Hi Jigar, Thanks for clearing the never ending doubts regarding FATCA/CRS.

    I have a question regarding CRS declaration as I am not a US citizen or resident and understanding FACTA does not apply to me.

    For CRS declaration do we need to give our Tax Identification ID, we are Indian citizen resident of Canada.

    Thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes. It is now part of a revised KYC (Know Your Customer) requirement. It will help tax department of both countries to directly link your accounts, income and assets. Thanks.

  146. Amardeep Singh says:

    I had US greencard and returned to India, maintaining NRI status while living in India. Submitted zero dollar tax return when visited twice to US, from 3years did not went to US so assuming US resident status is gone but did not surrendered greencard yet.
    Got FATCA/CBS letter from India bank to report, Have NRE FD, NRI savings acct which accumulated interest.
    1) In the form I guess I need to say ‘No’ to US person
    2) In future probably India Income Tax Dept will ask to pay TDS for the interest incurred from last 3yeasrs and convert to NRI acct to local rupee acct
    3) Will US penalize me for violation that I did not reported foreing income in US tax returns all these years.
    4) whats effective date of the law FATCA will use in determining interest earned

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. You are a US person. As per the form, just having greencard qualifies you as a US resident. Only after you surrender a greencard, you are not a US resident.
      1a. When you move to India, your status change to resident. NRI is not a status to maintain. Whether you are or are not an NRI and is determined by how many days you live in India and your intentions of living in India.
      2. By maintaining NRE account, you are evading taxes so please consult your CA for guidance.
      3. Yes. however, US is giving you an opportunity to come out clean by voluntarily disclosing and paying tax, interest and penalty, if any. Please consult with your CPA.
      4. Effective date of FATCA is July 1, 2014. Interest income from 2014 will be reported if you meet the criteria i.e. have investments more than $50000. Thanks.

      • Amardeep Singh says:

        1) is $50000 limit for all accounts in all banks together or each individual bank account
        2) if I have to convert the above limit to dollars how do I calculate, dollar price on july 1st 2014 or today’s dollar price
        3) will surrendered green card makes any difference, I can not imagin my hard earned money and will be put on radar with heavy penalties because of this insane rules.
        4) how r we supposed to know these new laws, either bank or USA should have informed us. This rules looks like a way to trap ppl and the earn money
        5) if I transfer all my money to my parents local acct as gift, will this save me
        6) can I transfer some money so it becomes less of 50000 limit or should I close are account itself to save from above

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. FATCA is for individual. So while it need to apply for all accounts in all banks together, it would depend on how bank would report.
          2. As compliance is annual, you may take exchange rate as on Dec. 31 for conversion.
          3. Technically, surrendering greencard now may not relieve you from your liability of past years. However, a lot of NRIs have surrendered greencards. Also, it would only help if you are living in India and have no plan to live in USA in future.
          4. As a resident of a country, you are required to know all applicable laws. You may ask and hire a tax lawyer if you don’t know. Ignorance of law is not an excuse.
          5. Only for future liability. Please also note that there is a gift tax in USA so you would need to either gift under the threshold or report to IRS about gift. If you don’t do that and ready to take risk, you may gift the funds and close all accounts.
          6. As per US tax laws, the limit for reporting foreign financial account is only $10,000 (FBAR). So even if you have less than $50000 in Indian bank, while you may not file form 8938 (FATCA) but you still need to file FBAR and also include your Indian income in your tax return.
          Please not there is no threshold for reporting income. So if you have only $11 that generated $1 as interest, you are required to include $1 as interest income in your US tax return. You may not need to file FBAR or FATCA. Thanks.

      • Amardeep Singh says:

        1) What if I decide to surrender Greencard and declare in the FATCA form as Non-US Person.
        2) Maybe bank will convert to local rupee account and close NRE acct
        3) Will Indian Govt ask me to pay taxes from 2014 to till date for the interest of FD’s
        4) Other option might be to close NRE acct, so no need to declare any form

        • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

          1. You also take risks associated with the same.
          2. Bank will only do that after you approach bank with updated status. You also have an option to transfer money in RFC – Resident Foreign Currency Account.
          3. May be if they found out. Any with interest and penalty.
          4. If you are a resident, you are not allowed to maintain an NRE account. If you are an NRI, you need to have NRO/NRE account and give the country of residence and tax ID. Thanks.

  147. Jayansh says:

    A govt entity, accepting public deposits and having Fixed deposits in US on 6 months rollover. how the FATCA status would be determined. what form to fill up and to be given to the banker in US.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      I am not able to understand your question. Please elaborate. Thanks.

  148. Lina Shah says:

    I have a investment in the Bank o Baroda @ 3.2 million Rupees as Certificate deposit
    only. This money invested in NRE account. We are US citizen and staying in USA.
    Do I required to File FATCA/CRS Form. I just received the email from the bank to file this form before end of this month. Please give your advice.
    Thanks.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes. As you are an NRI, FATCA/CRS declartion will be required. While your account may not be reported now (as balance less than $50,000), it will be reported when the balance exceeds the threshold. I would strongly suggest to contact your CPA if you have not been reporting your BOB account and interest in USA. Thanks.

  149. Arjya says:

    I have to submit revised FATCA to IOB as I have changed my state of residency and also few other details. Do I have to put the credit card numbers with the limit in the KYC form?

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes, you may. Please contact your bank. Anyway, FATCA is for assets and not loans. Unless you have credit balance in your credit card (advance/over payment), I am not sure why you need to put credit card numbers.

  150. Jay says:

    Live in US with greencard. Wife has NRE and I have NRO account in ICICI. Her balance is like 50L and mine 42L. We received emails from ICICI to submit FATCA form by April 30. We have not declared FBAR in past. Bank said if I close account they won’t file FATCA to CBDT. I want to confirm that and find out who I can transfer the money to (parents?), I came to India for a job last year for few months but left it and have a local salary account, can I transfer there.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      All your accounts, salary or resident or NRO or NRE, will be reported. As ICICI has recently started, other banks will also ask for the FATCA/CRS declaration to update their records as a part of revised KYC requirements. Yes, you can transfer funds to your parents as gift. Thanks.

  151. Swetha says:

    Mr Patel,
    Thank-you for doing such wonderful job!!
    We are US CITIZENS with OCI and we moved to India in 2010. We own a business in the USA and have been filing taxes there.
    When we moved here we opened an NRE FD here in India for a term of 5 yrs
    Most of it is maturing at the end of this year
    We have not been filing FBAR and form 8938 either
    Our financial assets are worth 350,000 USD I understand that we haven’t reached the reporting threshold of form 8938 as we file taxes jointly as US citizens living abroad
    But for the past one year we haven’t left India and so it changes our status to resident of India. But our deposits are still in NRE FD.
    How do we report this ?
    Our bank here has still not done the KYC yet
    Please advice thanks

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      1. When you move to India in 2010, you are not allowed to maintain NRE account and transfer the balance either to RFC (Resident Foreign Currency) account or local resident account. As a result, the interest income would be taxable in India.
      2. As an Indian resident, you are required to report your foreign financial income and pay tax, if any.
      3. As a US resident (being US citizen), you are required to file FBAR and report Indian income (interest, capital gain, etc.) in your US return and pay tax in USA.
      4. I would advise you to contact your CA and take detailed guidance. I would also advise you to contact your CPA in USA and consider reporting of financial accounts and assets through Stremlined Compliance Procedures. As you have been living outside USA, you would not pay any penalty but you would amend last 3 years of tax returns and file 6 years of FBARs.
      5. If your CA doesn’t know, please contact us for your taxation and financial planning. Thanks.

  152. Kamal Dalal says:

    I have investments in India for a long time. All investments are from inheritance money received in INR. My bank pays taxes, for the dividend and interest income received from my investments, directly as shown in the bank statements. All my investments are long term well over a year and sold only if and when I need which is rare. I know there is no capital gain tax.
    I have not converted any INR to a foreign currency. I use INR as needed when I go for a visit to India.
    I am a US Citizen and file my taxes every year. Do I need to report income from foreign sources. Please note that I have not converted any INR to USD.

    • Jigar Patel, CFA (USA), MBA-Finance (USA), CPA (USA), CA (India) says:

      Yes. conversion into USD is only a formalities. The accounts, assets and income belong to you and you are required to report the same. Thanks.

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