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NRI compliance checklist

Filing obligations, deadlines, potential penalties, and direct links to filing sites for U.S.–India households.

Updated March 2026 · Educational only — not tax or legal advice.

If you are a U.S. person with Indian bank accounts exceeding $10,000 in combined balance at any point, you likely have filing obligations. Consult a qualified tax professional for your specific situation.

🇺🇸 U.S. obligations

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FBAR (FinCEN 114)

Combined Indian accounts (NRE + NRO + FCNR + FD + PPF) exceed $10,000 at any point during the year → must file. Filed separately from your tax return. Joint accounts count.

Potential penalty: up to $12,906/account/year (non-willful)
Deadline: April 15, 2026 (auto-extended to Oct 15)
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FATCA (Form 8938)

Foreign financial assets exceed $50K (single) or $100K (married) on Dec 31 → file with your 1040. Includes bank accounts, stocks, mutual funds, insurance policies, and pension plans in India.

Potential penalty: $10K + $10K/30 days (up to $60K)
Deadline: Filed with your 1040 tax return
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Gift Tax (Form 709)

Sent more than $19,000 to any one person in 2025 → file Form 709. Likely no tax owed (lifetime exemption is $13.99M), but the form must be filed. Transfers to your spouse (if U.S. citizen) are exempt with no limit.

Deadline: April 15, 2026 (with tax return)
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Large gifts received (Form 3520)

Received gifts or inheritances from non-U.S. persons totaling over $100K in a year → must report. No tax owed, but severe penalty for not filing.

Potential penalty: up to 25% of unreported gift value
Deadline: April 15, 2026 (with tax return)

FBAR filing checklist

Gather these before you start filing at bsaefiling.fincen.treas.gov:

Your information: Full legal name, SSN or ITIN, date of birth, U.S. address
For each Indian account: Bank name and address (e.g., State Bank of India, Mumbai branch)
Account number for each account (NRE, NRO, FCNR, FD, PPF, demat)
Account type: Savings, Fixed Deposit, Securities/Demat, or Other
Maximum balance during 2025 in the account's currency (INR or USD for FCNR)
Currency type for each account (INR for NRE/NRO, USD/GBP/EUR for FCNR)
Joint account holders — names and details if applicable
Whether you have signature authority over any account you don't own (e.g., parent's account)

How to find maximum balance: Log into your Indian bank's net banking. Check monthly statements for each month of 2025. The highest balance in any month across all accounts combined is what you report. Convert INR to USD using the Dec 31, 2025 exchange rate (~₹90 per USD).

🇮🇳 India obligations

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LRS — Liberalised Remittance Scheme ($250K/year)

Indian residents (including NRIs with resident status in India) can remit up to $250,000 per financial year (April–March) under RBI's LRS for permitted purposes including investments, education, travel, and gifts. Transactions must go through an authorized dealer bank.

Limit resets: April 1 each year (Indian financial year)
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TCS — Tax Collected at Source on outward remittances

For remittances above ₹10 lakh/year under LRS: 5% TCS (education, self-funded), 2% TCS (education via loan), 20% TCS (all other purposes including investment). TCS is refundable when you file your Indian income tax return (ITR).

Collected at time of remittance by your bank
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India Income Tax Return (ITR)

NRIs with India-sourced income (rent, capital gains, interest on NRO) must file ITR. NRE and FCNR interest is tax-free and does not require filing by itself. Use ITR-2 (no business income) or ITR-3 (with business income).

Late fee: ₹5,000 (₹1,000 if income under ₹5L)
Deadline: July 31, 2026
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NRE / NRO / FCNR account rules

NRE + FCNR interest: Tax-free in India. NRO interest: Taxed at 30% + cess. All accounts may trigger U.S. FBAR/FATCA filing. Use NRE for remittances from abroad, NRO for Indian income.

India ITR filing checklist for NRIs

If you have India-sourced income, gather these before filing at incometax.gov.in:

PAN card number — required for all India tax filings
Aadhaar number (if linked to PAN — mandatory for e-filing for most assessees)
Form 26AS / AIS — download from Income Tax Portal. Shows all TDS deducted on your income in India
NRO account statements — for interest income (taxable at 30%)
Rental income details — if you own property in India (gross rent, municipal taxes paid, home loan interest)
Capital gains statements — from sale of Indian property, mutual funds, or stocks
TCS certificate — if you made outward remittances from India (claim refund on ITR)
DTAA benefit claim — claim Double Tax Avoidance Agreement relief to avoid paying tax twice on same income (U.S.-India DTAA)
Bank account details — for refund credit (Indian bank, IFSC code)

Which ITR form? Most NRIs use ITR-2 (salary, capital gains, rental income, no business income). If you have business/freelance income from India, use ITR-3. ITR-1 (Sahaj) is NOT available for NRIs.

📅 Key deadlines at a glance

🇮🇳April 1India LRS limit resets ($250K/yr)
🇺🇸April 15U.S. tax return + Form 709 + Form 3520 + Form 8938
🇺🇸April 15FBAR due (auto-extended to Oct 15)
🇮🇳July 31India ITR due for NRIs
🇺🇸Oct 15FBAR final extension deadline
🇺🇸Oct 15U.S. tax return extension deadline
🇺🇸Dec 31FATCA threshold measured (account balances)

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Educational only. Not tax or legal advice. Consult a qualified professional. Penalties are approximate and adjusted annually. External links go to official government websites — RateCheckr is not affiliated with these agencies.

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