US Expat Taxes in India
India's booming economy attracts American professionals and entrepreneurs. The US-India tax treaty provides essential double taxation relief, but India's complex tax system with surcharges and cess requires specialized cross-border planning.
Tax Treaty Information
- Reduced withholding on dividends (15-25%), interest (10-15%), royalties (10-15%)
- Pension provisions
- Independent services provisions
- Student and researcher exemptions
FBAR & FATCA Requirements
US citizens must report all Indian bank accounts, NRE/NRO accounts, PPF accounts, fixed deposits, and demat accounts on the FBAR if aggregate values exceed $10,000.
Foreign Earned Income Exclusion (FEIE)
US expats can qualify for the FEIE in India. India's effective tax rates with surcharges can reach over 40% for high earners, often making the FTC more beneficial.
Need Expert Help Filing from India?
Our Enrolled Agents specialize in US expat tax filing and can ensure you're fully compliant with both US and India tax obligations.
Common Tax Issues in India
- 1NRE vs NRO account treatment for US tax purposes
- 2PPF may be classified as foreign trust
- 3Indian mutual funds classified as PFICs
- 4Surcharges and cess creditability for FTC
- 5TDS withholding on various income types
- 6PAN card requirements
Filing Deadlines
Local Tax Rates
5%-30% plus surcharges
10%-20%
18% GST
Local Resources
US Embassy in India
Consular services for US citizens in India
Local Tax Authority
Tax authority in India
IRS International Taxpayers
IRS resources for US citizens abroad
Frequently Asked Questions: US Taxes in India
Are my NRE/NRO accounts reportable on FBAR?
Is my PPF account a foreign trust?
How do Indian surcharges affect my US FTC?
Related Country Guides
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