Friday, January 16, 2015

Indian Americans Desi Assets under USA Tax lens

The USA has enacted a law Foreign Account Tax Compliance Act (FATCA). Under the law, all
financial institutions (brokerages, mutual funds, insurance companies, banks and hedge funds) in India are required to furnish information about US residents' financial accounts or investments
to the US tax department - the Internal Revenue Service (IRS). India born US resident-citizens, Green card holders and professionals with H-1B visa are required to declare details of their earnings in India
and pay tax thereon to the US government according to the laws of that country. However both India and US have a treaty signed to avoid double taxation.

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