US Tax Filing
for NRIs.
We handle FBAR for your Indian bank accounts, DTAA treaty benefits, PPF/EPF/NPS reporting, and rental income from India — so you file correctly and never overpay.
The NRI Tax Problem
US tax obligations most NRIs don't know about
Moving to the US or Canada doesn't end your connection to Indian financial accounts — but it does create reporting requirements that carry steep penalties if missed.
FBAR for Indian Accounts
Your savings at SBI, ICICI, HDFC, and other Indian banks must be reported if the combined balance exceeds $10,000. Most NRIs don't realize their NRE fixed deposits alone can trigger this requirement.
PPF, EPF, and NPS Reporting
The IRS treats PPF, EPF, and NPS as foreign trusts. Interest earned is taxable annually in the US — even if you haven't withdrawn a rupee. Form 3520/3520-A may be required.
NRE/NRO Account Compliance
NRE accounts are tax-free in India, but the interest is fully taxable in the US. NRO accounts holding rental income, dividends, or pension payments require careful reporting on both your FBAR and Form 1040.
India-US DTAA Benefits
The Double Taxation Avoidance Agreement prevents you from paying taxes twice on the same income. But you must file correctly to claim treaty benefits — missed credits mean overpaying.
Rental Income from India
Owning property in India that generates rental income? It must be reported on your US return. You can claim Foreign Tax Credits for TDS deducted at source, but the calculation is specific and often done incorrectly.
Indian Mutual Funds (PFIC)
Indian mutual funds are classified as Passive Foreign Investment Companies (PFICs) by the IRS, triggering complex Form 8621 reporting and potentially punitive tax rates. Many NRIs hold these without realizing the US implications.
What We Handle
Complete NRI tax services — every form, every account
US Federal & State Returns
Complete 1040 preparation including Schedule B (foreign interest), Schedule E (rental income), and all required international information returns.
FBAR & FATCA Filing
FinCEN 114 and Form 8938 for all Indian bank accounts, NRE/NRO accounts, demat accounts, PPF, EPF, and insurance policies.
Foreign Trust Reporting
Form 3520 and 3520-A for PPF, EPF, NPS, and superannuation accounts — properly characterized to minimize penalties.
DTAA Treaty Optimization
Full India-US treaty analysis to claim every applicable credit and exemption. We ensure no double taxation across jurisdictions.
PFIC Reporting
Form 8621 for Indian mutual funds. We evaluate the QEF, mark-to-market, and Section 1291 methods to find the lowest-tax approach.
Streamlined Catch-Up Filing
Haven't filed for years? We handle the full Streamlined Foreign Offshore Procedures — 3 years of returns, 6 years of FBARs, zero penalties for qualifying taxpayers.
India-US DTAA: How It Protects NRIs from Double Taxation
The India-US Double Taxation Avoidance Agreement (DTAA), formally the Convention between the Government of the United States of America and the Government of the Republic of India for the Avoidance of Double Taxation, is the most important treaty for NRIs filing US taxes. It determines which country has the primary right to tax specific types of income and provides relief mechanisms — primarily the Foreign Tax Credit — to prevent the same income from being taxed in both jurisdictions.
Salary and employment income is generally taxable in the country where the work is performed. If you are an NRI working in the US on an H-1B, L-1, or any other work visa, your US salary is taxable only in the US. However, if you also received salary from an Indian employer for work performed in India (such as during a short-term deputation), that portion may be taxable in India under Article 16 of the treaty. You would then claim a Foreign Tax Credit on your US return for the Indian taxes paid.
Interest income from Indian bank accounts — including NRE, NRO, and fixed deposits — is taxable in the US regardless of whether it is taxed in India. NRE account interest is tax-exempt in India but fully taxable in the US. NRO account interest is subject to TDS in India (typically at 30% for NRIs), and you can claim a Foreign Tax Credit for this TDS on your US return. Under Article 11 of the DTAA, the source country (India) may tax interest at a reduced rate, and you can claim the credit for the amount actually withheld.
Rental income from Indian property is taxable in both countries under the DTAA — India taxes it at source, and the US requires you to report it on Schedule E. The TDS deducted by your tenant or property manager in India qualifies as a Foreign Tax Credit on your US return. We convert the rental income from INR to USD using the IRS-accepted average exchange rate for the year, calculate the allowable deductions (property taxes, maintenance, depreciation), and ensure the credit is properly applied to eliminate double taxation.
PPF, EPF, and NPS: The Foreign Trust Trap
One of the most misunderstood areas of NRI taxation is the US treatment of Indian retirement and savings accounts. The Public Provident Fund (PPF), Employee Provident Fund (EPF), and National Pension System (NPS) are tax-advantaged in India, but the IRS does not recognize Indian tax-deferred vehicles. These accounts are classified as foreign trusts or foreign financial accounts, creating multiple reporting obligations.
PPF is particularly problematic. It is a government-backed savings scheme with a 15-year lock-in period, and interest earned is completely tax-free in India. However, the IRS considers the annual interest accrual as taxable income in the US. Some tax practitioners treat PPF as a foreign grantor trust requiring Form 3520 (Annual Return to Report Transactions With Foreign Trusts) and Form 3520-A (Annual Information Return of Foreign Trust With a US Owner). The penalties for failing to file these forms are severe — the greater of $10,000 or 5% of the gross value of the trust per year.
EPF has both an employer and employee contribution component. The employer contribution and interest earned are considered taxable income in the US in the year they accrue. When you withdraw EPF upon leaving India, the treatment depends on whether you previously reported the annual accruals — if you did, only the previously unreported portion is taxable. The EPF balance must also be reported on your FBAR and Form 8938.
NPS operates similarly — contributions may not be deductible on your US return (unlike in India, where they qualify under Section 80CCD), and the annual growth is taxable. Upon withdrawal, the annuity portion is taxable as pension income in the US, and any lump-sum withdrawal is taxed as ordinary income. Proper basis tracking from the beginning prevents double taxation on amounts you already reported.
Our EAs maintain basis schedules for all your Indian retirement accounts from the date you became a US tax resident, ensuring you are never taxed twice on the same income and that all trust reporting forms are filed correctly.
Transparent Pricing
Flat fees. No hourly billing. No surprises.
Every plan includes FBAR filing, FATCA reporting, and year-round support. Pick the tier that matches your situation.
Basic
W-2 income, basic Indian accounts
$499
- Federal + 1 state return
- FBAR filing (up to 10 accounts)
- Form 8938 (FATCA)
- Foreign Tax Credit (Form 1116)
- NRE/NRO interest reporting
- Basic DTAA treaty positions
Premium
Multiple income sources, property in India
$799
- Everything in Basic
- Indian rental income (Schedule E)
- PPF/EPF/NPS trust reporting
- Indian capital gains coordination
- Up to 25 FBAR accounts
- Form 3520/3520-A preparation
- Audit support included
Complex
PFICs, business income, catch-up filing
$1,099+
- Everything in Premium
- PFIC reporting (Form 8621)
- Indian business or freelance income
- Multiple state returns
- Streamlined catch-up filings
- Unlimited FBAR accounts
- Priority EA access
Why NRIs Choose Zenith
A team that speaks your financial language
We understand Indian financial products
PPF, EPF, NPS, LIC policies, ELSS mutual funds, NRE/NRO FDs — we know how each one maps to US tax forms. No explaining what a PPF is to your accountant.
IRS Enrolled Agent
Our EAs are federally licensed by the IRS and specialize in international taxation. They represent you directly before the IRS if questions arise.
Both sides of the treaty
We coordinate your US return with your Indian tax position. TDS credits, DTAA provisions, and Foreign Tax Credits are applied correctly — so you never overpay.
Flat-fee pricing
No hourly billing, no surprise charges. You know the cost before we start. The price includes your return, FBAR, FATCA, and all international forms.
US and Canada specialists
Whether you're an H-1B in San Francisco or a PR in Toronto, we handle the cross-border complexity. India-US and India-Canada DTAA both covered.
Secure, remote process
Everything is handled online through our encrypted portal. Upload documents from anywhere, review your return via video call, and e-file without visiting an office.
How It Works
Three weeks. Every form filed.
01
Day 1
Free discovery call
A 20-minute call to map your US income, Indian accounts, property, and investment holdings. We identify which forms you need and which treaty benefits apply — no paperwork yet.
02
Week 1
Document intake
Upload W-2s, Indian bank statements, NRE/NRO interest certificates, Form 16 from India, property documents, and mutual fund statements to our encrypted portal. We reconcile everything.
03
Week 3
Review & e-file
Your assigned EA walks through every line of your return, FBAR, and trust forms. You sign electronically, we file with the IRS. Year-round audit support is included.
Frequently Asked Questions
Do NRIs need to file US taxes?
Yes. If you are a US citizen, Green Card holder, or meet the Substantial Presence Test, you must file a US federal tax return reporting your worldwide income — including income earned in India. This applies even if you already paid taxes on that income in India. The India-US Double Taxation Avoidance Agreement (DTAA) and Foreign Tax Credit can prevent you from being taxed twice on the same income.
Do I need to report my Indian bank accounts (FBAR)?
Yes. If the combined balance of all your foreign financial accounts — including savings accounts at SBI, ICICI, HDFC, or any Indian bank, plus NRE/NRO accounts, PPF, and demat accounts — exceeds $10,000 at any point during the year, you must file an FBAR (FinCEN 114). Penalties for non-filing can be severe: up to $10,000 per account per year for non-willful violations, and up to $100,000 or 50% of the account balance for willful violations.
What about PPF, EPF, and NPS accounts for US tax purposes?
PPF, EPF, and NPS accounts are considered foreign trusts by the IRS and may require Form 3520 and Form 3520-A reporting. The interest and growth in these accounts is generally taxable in the US annually, even if you have not withdrawn the funds. Many NRIs are unaware of this requirement. Additionally, these accounts must be reported on your FBAR and potentially on Form 8938 (FATCA) depending on the aggregate balances.
Can I claim benefits under the India-US DTAA?
Yes. The India-US Double Taxation Avoidance Agreement (DTAA) provides mechanisms to prevent double taxation on the same income. You can generally claim a Foreign Tax Credit on your US return for income taxes paid to India, dollar-for-dollar. The treaty also contains specific provisions for pension income, capital gains, interest, dividends, and professional services income. Proper treaty election and documentation is essential — our EAs ensure every applicable treaty benefit is claimed.
What if I haven't filed US taxes for several years?
The IRS Streamlined Filing Compliance Procedures allow qualifying NRIs who were non-willfully non-compliant to catch up without penalties. You will need to file 3 years of delinquent federal tax returns and 6 years of delinquent FBARs. If you were living outside the US, you may qualify for the Streamlined Foreign Offshore Procedures, which waive all penalties entirely. We handle the entire catch-up process, including the required certification statement.
Reviewed by Harsh Agarwal, EA (#00158482)
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