1. U.S. Elementary Education : What Parents Need to Know
    Dismiss Notice

Nri Taxation In The Usa

Discussion in 'General Discussions - USA & Canada' started by HariLakhera, Apr 3, 2019.

  1. Thyagarajan

    Thyagarajan Finest Post Winner

    Messages:
    12,112
    Likes Received:
    12,919
    Trophy Points:
    615
    Gender:
    Male
    :hello:An orderly by very same name Hanuman (there was no aadhaar for Him) served in my department and true to his name was a celibate. In the party in year 1978 on his superannuation, staff all contributed generously and presented the cash to him.
    I was asked to preside over this function. During speech, I asked what he intent to do wi that money.
    He responded in Marathi that it will be used only in the ongoing construction of temple for Hanumanji that he had undertaken.
    Deafening applause.
    The Aadhaar image more or less resembling but he might have returned to heart of His Lord pretty long ago before the card came into existence.
    Thanks and Regards.
    God is planning perhaps to introduce a la Aadhaar in heavens and hell too! He is maintaing accounts for all humans and IN-Humans!
     
  2. Amulet

    Amulet IL Hall of Fame

    Messages:
    3,147
    Likes Received:
    5,089
    Trophy Points:
    408
    Gender:
    Female
    The Aadhaar Act, 2016 states, "Every resident shall be entitled to obtain an aadhaar number by submitting his demographic information and biometric information by undergoing the process of enrollment."

    The Act further defines residency as, "An individual who has resided in India for a period or periods amounting in all to 182 days or more in the 12 months immediately preceding the date of application for enrolment."​

    The above two quotes (from linked article below) beg the question:
    Which part of India is heaven, and which is hell ?

    Read more at:
    //economictimes.indiatimes.com/articleshow/59998036.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
     
    Last edited: Apr 4, 2019
    Thyagarajan likes this.
  3. Thyagarajan

    Thyagarajan Finest Post Winner

    Messages:
    12,112
    Likes Received:
    12,919
    Trophy Points:
    615
    Gender:
    Male
    :hello: I believe God Has the locus standi to copy verbatim Bharat matha’s laws(loss) to qualify the returned souls for granting or and possession of HIS Kingdom’s Card.
    Thanks and Regards.
    God has powerful nonodigital(!) universe/cosmos like a thought lift us from sleep.
     
  4. HariLakhera

    HariLakhera Finest Post Winner

    Messages:
    2,423
    Likes Received:
    2,849
    Trophy Points:
    283
    Gender:
    Male

    Thanks for the feedback.

    Complex indeed! All my life I a have lived in India , now shifted to USA as permanent resident and may stay back.
     
  5. Amulet

    Amulet IL Hall of Fame

    Messages:
    3,147
    Likes Received:
    5,089
    Trophy Points:
    408
    Gender:
    Female
    US people (USC and GC-holders) planning to retire in India, should keep an eye on the lobbying efforts of the Americans_Abroad ( I know the abbreviation "AA" is similar to those who like to drink, and "ACA" normally jogs to mind the much maligned Obamacare in America) organization to get the USA be just like other G-20 nations of the world.

    All countries in the world (except USA and Somalia, I think) tax only the income of residents, and not non-residents. Taxation based on Citizenship is not rational; and all sensible countries have recognized that. After all, non-residents do not consume the variety of government services that residents tend to consume. There has been an ongoing effort to convince the US Congress that the country ought to consider joining the civilized world in taxing only the people who actually live there, and not those who do not.

    When the most recent TAX REFORM was signed into law (by Prez. Trump) the US Congress did not include the provision to exclude non-residents from taxation.

    Residency-Based Taxation (RBT) Update | Rockville, MD |
     
    Last edited: Apr 9, 2019
    Thyagarajan likes this.
  6. Amulet

    Amulet IL Hall of Fame

    Messages:
    3,147
    Likes Received:
    5,089
    Trophy Points:
    408
    Gender:
    Female
    Now that your tax-residency is clear, going back to the question in the first post, for you
    • it is mandatory to declare all your India sourced income in the USA, from all sources, and pay US taxes on it. If you have India-TDS deductions, [ie. forgot to avoid them by filing appropriate forms in the bank, or keeping taxable accounts in India], they would be TAX-CREDITS in USA. US-internal revenue service publishes US$=INR annual average exchange rate for use by tax filers, such as yourself. Plan to do this before the deadline of April 15th so that you do not owe any penalty on what you owe.
    • Mind It! India source incomes from NRE, NRO, Fixed-Dep, Dividends...etc. etc. all are taxable in the USA. Eliminating TDS in India helps to eliminate the complexity of filing another form to claim tax-credits in the US Tax Returns for what was paid in India. Keeping the paperwork simpler can be appreciated when the list of investments and TDS is very long.
    • Keep good records of the values of all your foreign currency based stock/bond/insurance-policy investments on the date of becoming the permanent resident of USA, and on Dec 31st of each year.
    • You must also go into the FBAR reporting page (see @Laks09 post for link) and report all your bank, and investment accounts in INDIA.
    Did anyone say welcome to the USA when you moved ? [This might often sound tongue-in-cheek, depending on the "alien person"'s decision to want to get taxed in the USA]

    Welcome to the USA.

    P.S. All of the above comments are made with the assumption that you'd file your own tax returns in the USA. However, many older India-Citizen/US permanent residents become a dependent on their child's Tax Return. If this be the case, there are at least less paperwork for the retiree GC holder from India. However, any "under reporting" of the "dependent"'s income would accrue as a liability to the child who takes on the responsibility to include the older relative on her/his US tax returns. :disappointed:Beginning this year's tax filing (for the calendar year 2018) there are (reportedly) less tax advantages for acquiring dependents on one's tax returns.
     
    Last edited: Apr 9, 2019
    Thyagarajan likes this.
  7. Amulet

    Amulet IL Hall of Fame

    Messages:
    3,147
    Likes Received:
    5,089
    Trophy Points:
    408
    Gender:
    Female
    Money causes pain in getting;
    In the keeping, pain and fretting;
    Pain in loss and pain in spending:
    Damn the trouble never ending!
    ------The Panchatantra
    FinCEN = Financial Crimes Enforcement Network, US Treasury Department law enforcement.
    FATCA = Foreign Asset Tax Compliance Act ( a legislation from US Congress)

    US Tax Residents are required to file an annual electronic form, to comply with the Foreign Bank Account Reporting or FBAR, FinCEN-114 if their foreign financial accounts total exceeded a certain limit, US$10000 for 2018 (about ₹700,000). This form is filled online, and filed electronically, and separately from their tax returns for the year. If @HariLakhera holds that much or more money in Indian bank and investment accounts, he would be filing this form, because he is a US Tax Resident.

    When the foreign held financial assets are much higher, (there are threshold lower limits for these too), then, US Tax Residents are required to file an annual paper/electronic form, called Form-8938, otherwise known as the FATCA filing, and attach this form to their Tax Returns. There is an equivalent to this 8938 form in India IT-returns filing using ITR-2 form. This is done in Schedule-FA. You will find a reference to Schedule FA on the ITR-2 tax form, on page 3. upload_2019-4-12_9-31-51.png

    Almost all European countries, and a large number of non-European countries have bilateral agreement with the United States to collect such FATCA information from their "tax residents", and share with the US-Internal Revenue Serivce, if the US-IRS requests data on a specific US Tax Returns filer. India is one of the countries with such an agreement with the USA. The complexity of Tax Returns filing in most of these countries is pretty much close to one another, although unfamiliar systems might seem rather onerous to the newbie.

    None of these forms increase or decrease a person's tax assessment for the year. These are merely reporting to the government(s) where your financial wealth is parked. Investments like Land, Houses, Minerals, Metals -- are not part of this reporting.

    Comparison of Form 8938 and FBAR Requirements | Internal Revenue Service
     
    Last edited: Apr 12, 2019
  8. Amulet

    Amulet IL Hall of Fame

    Messages:
    3,147
    Likes Received:
    5,089
    Trophy Points:
    408
    Gender:
    Female
    Harry and Meghan’s child to pay US taxes?
    As US citizens, Meghan - and her child - are liable to pay US taxes.
    With the baby's due date and the US's tax day - 15 April - fast approaching, here's a look at why these royals could be forced to pay money to the US government.
    The US is one of only a few countries to charge tax based on citizenship and not residency. Other countries that tax non-resident citizens include Eritrea and Myanmar.
    This means that even though the duke and duchess will be living at Frogmore Cottage in Windsor, the US government still expects Meghan to file tax returns with the Internal Revenue Service (IRS) - the US tax authority.
    [​IMG]

    The link has more information on the complexities that Megan (dutchess of sussex) has to endure with the US-IRS. Her husband will not be filing any joint tax returns with her, because, then she has to file both FinCEN114 and the FATCA form for all his wealth in England.
     
    Last edited: Apr 14, 2019
    shravs3 likes this.
  9. Amulet

    Amulet IL Hall of Fame

    Messages:
    3,147
    Likes Received:
    5,089
    Trophy Points:
    408
    Gender:
    Female

Share This Page