OCI: Taxes and finances

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pandian09

Registered Users (C)
Does anybody know of a service that can provide comprehensive answers to questions on Tax implications, property ownership and future investments in India after obtaining OCI ?

Some of the questions on my mind are :
a) What and how I should report my assets in India on the US taxes?
b) If I am still sending money to India, how should I report it to IRS?
c) What happens to the few properties I own in India? How can I valuate them?
d) What happens to inheritance?
etc etc ..

I am not sure, if a local tax advisor can help with these questions. So, I would like to get an hour phone consultation (paid, of course) to sort our all these matters and end up with a clear plan of action . Any ideas??

Mahesh
 
pandian09 said:
Does anybody know of a service that can provide comprehensive answers to questions on Tax implications, property ownership and future investments in India after obtaining OCI ?

Some of the questions on my mind are :
a) What and how I should report my assets in India on the US taxes?
------- I think US treasury has form that one has to inform about the accounts in foreign country if one has more than 5000USD in that account ( I am not sure about form number)
b) If I am still sending money to India, how should I report it to IRS?

--- I don't think that it is needed as you have Paid tax on that money in US
c) What happens to the few properties I own in India? How can I valuate them?
------------ Nothing happens to properties you own in India.
d) What happens to inheritance?
---Nothing, you can keep all.
etc etc ..

I am not sure, if a local tax adviser can help with these questions. So, I would like to get an hour phone consultation (paid, of course) to sort our all these matters and end up with a clear plan of action . Any ideas??
You can talk to CPA in US and CA in US for tax.



Mahesh
Click to expand...

I did some research on Buying property and It has been posted in the threads by me and you can search for that.
If you provide full details of the property like if when you bought or going to buy I can guide you. If you buy any property in India the Pay through NRE Account check.

Read the links:
Tax treaty between India and United States of America
http://www.unclefed.com/ForTaxProfs/Treaties/inditech.pdf
Tax Highlights for U.S. Citizens and Residents Living Abroad
http://www.taxmeless.com/IRS593Publication.htm

http://nriinformation.com/default.html

NRI/OCI buying Property in India

Please check the following links for more detailed discussion...
http://www.r2iclubforums.com/forums/...d-revenue-land
http://www.immihelp.com/forum/showthread.php?t=25255
http://www.r2iclubforums.com/forums/...an-Real-Estate
http://www.r2iclubforums.com/forums/...-land-in-India

Here is the actual RBI page on this topic..
http://www.rbi.org.in/scripts/FAQView.aspx?Id=33

http://rbi.org.in/Scripts/NotificationUser.aspx?Id=948&Mode=0

http://rbidocs.rbi.org.in/rdocs/notification/PDFs/32609.pdf
http://www.femaonline.com/
FORMS for NRI or POI

http://www.vakilno1.com/froms_html/nri.html
 
Thanks Ginnu ... just skimmed through the links you had provided; looks like wealth of information; and I will go through them in detail. But I am still a bit lost; let me give a quick look into my concerns. When I filed my US taxes last month, I was asked if I had more that $10,000 in an overseas account --- wasn't sure how to respond to that. In India ; is that cash or other assets?? I have an LIC account(my Father's idea :-)) --- Do I need to declare this ? Do I need to declare the properties I own ? Not that I have loads of properties but it is more than $10,000.What about gold? And how does future inheritance figure into this? Somewhere I read that I need to establish a trust for all of these.

There has been no changes(content-wise) between my tax filings before and after US Citizenship --- and this doesn't sound right to me. Don't I at least need to report these assets to IRS ?

So, I would like(begrudgingly) to have sorted this to keep the taxmen of both countries happy and not end up paying hefty penalties. So, I am looking for some guidance/step-by-steps on what needs to be done wrt IRS after obtaining US citizenship in terms of assets (not income) in India - both pre-USCitizenship and Post-US Citizenship assets. Maybe nothing, but I would like to clarify that.

Any thoughts ?

Mahesh
 
Gold, Property etc., need not be disclosed ... I mean, there is no requirement to disclose them, unless you traded (sold) them.
Bank Accounts ... yes, you need to disclose them as long as the combined balance in overseas accounts is more than 10K USD. You should also be paying taxes on any overseas income. Accounts are generally where you have a signature authority. A company, a trust, a bank account or a securities account ... they will all get covered. Even LIC if you are a holder, but probably not if you are a nominee.

You should have been doing this as a resident (H1/L1/EAD/whatever status) anyway, but not doing it as a GC holder is worse. And they are making things stricter day by day.
If you are not compliant, I can not advise you any which way. It is very tricky. Check the blog by Phil Hodgen for horror stories. http://www.hodgen.com/phils-blog/
Read through a few pages of this blog ... in your spare time ... but it will give you an idea of the problem.
 
Last edited by a moderator:
pandian09 said:
Thanks Ginnu ... just skimmed through the links you had provided; looks like wealth of information; and I will go through them in detail.

But I am still a bit lost; let me give a quick look into my concerns. When I filed my US taxes last month, I was asked if I had more that $10,000 in an overseas account --- wasn't sure how to respond to that.
--------------------- if you have more than $10,000 in an overseas account then that info is sent to US treasury.

In India ; is that cash or other assets??
--------------Cash in Bank Account (in India)
I have an LIC account(my Father's idea :-)) --- Do I need to declare this ?
---NO
Do I need to declare the properties I own ?
----NO
Not that I have loads of properties but it is more than $10,000.
---not needed
What about gold?
---No
And how does future inheritance figure into this? Somewhere I read that I need to establish a trust for all of these.
--Not needed. Land,home you get through inheritance in India is not needed to be declared.

There has been no changes(content-wise) between my tax filings before and after US Citizenship --- and this doesn't sound right to me.
Don't I at least need to report these assets to IRS ?
---------------Not needed
So, I would like(begrudgingly) to have sorted this to keep the tax men of both countries happy and not end up paying hefty penalties. So, I am looking for some guidance/step-by-steps on what needs to be done wrt IRS after obtaining US citizenship in terms of assets (not income) in India - both pre-USCitizenship and Post-US Citizenship assets. Maybe nothing, but I would like to clarify that.

Any thoughts ?
--------------------- you CAN keep the Indian property before you get US Citizenship or a you buy property after getting US Citizenship.
Mahesh
Click to expand...

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