STRICT US DISCLOSURE NORMS FOR OFFSHORE ACCOUNTS

The tax authority in the US has now made disclosure of offshore accounts mandatory even for non-resident individuals or corporates who have significant business in the US. This has ramifications for Indians working or having business interest in the US and also the subsidiaries of Indian companies registered there. The expanded regulation requires certain non-residents to declare their 'financial account' in a foreign country if the aggregate value of these accounts exceeds $10,000 (about Rs.5, 00,000) at any time during the calendar year.