00:00we have seen some videos in our previous videos about US tax structure
00:04in fact it was also said that a bad tax information
00:07can be taken from US to the NRIs
00:11but a question is that if you have only 10-15 lakhs
00:19accounts for 10-15 lakhs are then what you will give us
00:21government information for us?
00:23it will be a question to see this video
00:24you can see it all because we will talk about FBAR and FATCA. There are two different requirements
00:30for reporting, which in the U.S.A. can be found in many Indians. If you are in the U
00:36.S.A.
00:36in the U.S.A. can be found in India, your bank account, FD, mutual fund, PPF and insurance.
00:44This is not just India. U.S. tax rules, you have to report your foreign accounts and assets
00:51reports. Now, first of all, you can understand that every NRI does not have the rules.
00:58U.S. reporting, you need to see that you are a U.S. person or not. If you are a
01:03U.S. citizen,
01:06green card holder or U.S. tax resident, you can generally be a U.S. person.
01:12H-1B and L-1 visa are a substantial presence test on U.S. tax resident.
01:18F-1 students and other visa holders can be a different exemption rules. So, if you are
01:25looking at the conclusion of this, this is not the right thing.
01:29Now, let's talk about FBAR.
01:31FBAR, Foreign Bank Account Report. Its official form is FinCEN Form 114.
01:37It is not IRS, but the U.S. Treasury Financial Crimes Enforcement Network.
01:42Y равно, FinCEN勢 Football Dialogue and its FBAR FBAR Comments, to the end of this,
01:46the extent of the year, is the S
01:47FBAR Conference. Now, the form of FBAR financial accounts is not the first of all,
01:53the FBAR FBAR to get the number of accounts. So, if you are a U.S., the FBAR filing requirement,
02:11and 2 FDs. If there is a combined maximum balance of $10,000 to more than $10,000, then FBAR
02:19check is necessary. This is not the average average balance. Generally, the highest balance
02:26and the aggregate maximum value is important. Therefore, only 31 December, the balance
02:31of the decision is not necessary. FBAR, Indian Savings Account, NRE, NRO, Fixed Deposits
02:38and other foreign financial accounts can also be relevant. But FBAR file means
02:49that the balance of the balance is not necessary. This is Majorly or Information Reporting.
02:55Accounts, Interest, Dividend, Capital Gain or other income, which are other income
03:01forms, can also be reported to US Tax Returns. Now, FATCA. FATCA, Foreign Account Tax Compliance
03:11Act. This objective is US taxpayers' foreign financial assets reporting. Individual taxpayers'
03:19account.
03:19So, for example, FATCA reporting is known as IRS Form 8938, which is eligible for form 1040
03:28to be filed. FBAR's comparison, FATCA's scope is more than a broader scope of foreign bank
03:35accounts, foreign stocks, mutual funds, certain insurance products, pension interests, brokerage
03:41accounts and some foreign entities. In India, you also have NRO accounts with mutual funds,
03:50ULIPs, DMAT Holdings or any Indian company or any Indian company in ownership interest.
03:54So, in the form 8938 analysis, you can consider it to be considered.
03:58Every asset can be treated and some investments for additional forms.
04:03Now, the most important question. FATCA threshold is how much?
04:08If you live in US and have a single or married filing separately file,
04:12So, for you, form 8938 threshold normally 15000 dollars, year end value,
04:19or 75000 dollars, year end value, or any individual value, or any other value,
04:22the cost of $75000 dollars to any year end value.
04:24The cost of United Filing Jointly, normally threshold $10000000 year end,
04:29or $10000000 dollar, the cost of $10000000 dollar,
04:31and then $10000000 dollar, any other $10000000,
04:32if you are in US, then threshold can be damned.
04:35single filer normally threshold $2,000,000 year-end or $3,000,000
04:42or merit filing jointly for $4,000,000 year-end or $6,000,000
04:47or $6,000,000. This is why filing status and residency
04:51exact rules can be verified. Now, let's understand
04:55an important difference. If Indian accounts combined
04:59maximum balance was $12,000, then F bar threshold
05:03will be crossed, but FATCA threshold will be crossed.
05:08So, F bar won't work. Firm 8938 will not work.
05:11Second, foreign financial assets are FATCA threshold
05:15and foreign accounts combined balance is $10,000.
05:19So, both filing are applicable. So, F bar and FATCA
05:24will not be found at all. Both are independent requirements.
05:28Now, a practical example will be explained,
05:59which will be clear.
06:00So, F bar and form 8938 thresholds are below.
06:02So, F bar and form 8938 will not work.
06:07Now, if the bank accounts and FD is $15,000,000
06:10and mutual funds and foreign assets will be $85,000,
06:14then F bar and form 8938 will be applicable.
06:46Here is an important point.
06:47So, F bar and form 1040.
06:50Now, we have to talk about Indian assets,
06:52which you don't want to ignore.
06:54So, you don't want to ignore.
06:55First, NRE and NRO accounts.
06:57NRE accounts in India means tax-free
06:59doesn't mean that U.S. reporting will not work.
07:03In India, tax treatment and U.S. reporting requirements
07:06are different things.
07:07Second, fixed deposits.
07:09NRE or NRO.
07:11Principal, interest and account details
07:13reporting considerations create.
07:15Third, PPF.
07:17PPF, US reporting and tax treatment complex
07:20can automatically ignore it.
07:23Fourth, Indian mutual funds.
07:26Some foreign mutual funds.
07:27PFIC rules can be under.
07:30In this situation, F bar and FATCA
07:33and form 8621,
07:34such as additional forms can be relevant.
07:37Fifth, ULIPs and insurance products.
07:41All insurance policy is not reportable,
07:43but the investment component,
07:44cash value and ownership
07:46analysis is very important.
07:48Sixth point, NANDMAT and brokerage accounts.
07:52Not just bank accounts,
07:53investment accounts and security holdings
07:55in reporting analysis.
07:57If you have a financial interest in Indian business,
07:59partnership or company,
08:01then FATCA and other U.S. tax forms
08:04can be relevant for the filing.
08:07One important thing is to listen.
08:09F bar and FATCA income tax return is not.
08:12If you have a interest in Indian accounts,
08:14FD interest,
08:16mutual fund dividend,
08:17rent,
08:18property,
08:19capital gain,
08:20then the U.S. tax return
08:23will be a different reporting.
08:25If you have a tax paid income in India,
08:28then the U.S. tax credit
08:29or treaty related relief
08:31will be a question.
08:33But in India,
08:34the F bar and FATCA reporting
08:36will not be done automatically.
08:39There are some common mistakes
08:40that you can do.
08:51So,
08:52just keep the balance between the U.S. tax return.
08:55For the U.S. tax return,
08:57the U.S. tax return,
08:58the U.S. tax return,
08:59the U.S. tax return,
09:02the U.S. tax return.
09:11First?
09:13After that,
09:14X being pak Ottнее,
09:22the U.S. tax return ,
09:28situation के मताबिक deliquant filing, amended return, streamlined procedures
09:33या दूसरे compliance options relevant हो सकते हैं
09:36ये भी याद रखिए कि Indian banks और financial institutions
09:39FATCA compliance के तहट certain US linked account information collect या report कर सकते हैं
09:45US address, US phone number या US tax status होने पर
09:49bank FATCA declaration या US tax identification details मांग सकते हैं
09:54तो अब FBAR और FATCA का सबसे simple difference याद रखिएगा
09:58FBAR majorly foreign financial accounts की reporting है और इसका threshold relatively low है
10:03aggregate account value 10,000 dollars से उपर किसी भी समय
10:07FATCA form 8938 broader specified foreign financial assets की reporting है
10:12इसका threshold आम तोर पर ज्यादा है और filing status के साथ-साथ
10:17US या foreign residency पर depend करता है
10:20FBAR FINCEN को file होता है जबकि form 8938
10:23IRS को form 1040 के साथ file होता है
10:27और सबसे ज़रूरी बात FBAR file करने का मतलब यह नहीं है
10:30कि FATCA file करने की ज़रूरत नहीं
10:32काई cases में दोनों forms required होते हैं
10:34अगर आप US-based Indian है तो हर साल एक foreign asset checklist ज़रूर बनाइए
10:39इसमें NRE, NRO, savings account, FDs, PPF, mutual funds, DMAT accounts, insurance products और foreign business interests को शामिल करिए
10:47हर account का bank name, ownership type, highest balance और year end balance record करिए
10:51साथी interest, dividend, rent, capital gain और India में paid tax का record भी रखिए
10:57फाइनल टेक अवे बहुत सिंपल है
10:59इंडिया में account या investment होना अपने आप में problem नहीं है
11:02problem तब बनती है जब applicable reporting requirement को समझे बिना उसे ignore कर दिया जाए
11:09अगर foreign accounts का combined balance साल में किसी भी समय 10,000 डॉलर से उपर गया
11:13तो FBARS जरूर चेक करिएगा
11:15और FATCA threshold से उपर अगर आपका total foreign financial assets का requirement है
11:20तो उसे भी चेक करिए
11:21अगर आपके पास Indian mutual funds, PPF, ULips, property income या business interest है
11:26तो केवल FBAR देखकर अपने case को complete मत मानियेगा
11:29FBAR और FATCA information reporting requirements है
11:32ये personal tax advice का substitute नहीं है
11:35आपकी final obligation citizenship, green card status, visa, substantial presence, filing status, residence, account ownership और asset type पर depend
11:44कर सकती है
11:45इसलिए filing से पहले current IRS और Fincent instructions देखिए
11:49या फिर qualified US India tax professional से personalized advice वानियेगा
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