Home |Tax returns filing | Many US citizens living in India maintain some of their assets in the US itself. Are such citizens required to report their US investments in India? If yes, what’s the process of doing so?

Many US citizens living in India maintain some of their assets in the US itself. Are such citizens required to report their US investments in India? If yes, what’s the process of doing so?

Faisal
Answered on February 05,2020

As per the Income-tax Act, 1961, a person who is a resident in India and who meets the below criteria, is mandatorily required to file Income Tax Return (ITR) in India and report details of all foreign assets and foreign incomes earned in his/her income tax return.

1) A person who has any asset (including financial interest in any entity) located outside India.

2) A person who has signing authority in any account located outside India.

3) A person who has income from any source outside India.

Such income and assets must be mandatorily reported in Schedule FA (Foreign Assets) while filing ITR in India. Remember that not doing so can invite a notice and penalty from the department.

Many US citizens living in India maintain some of their assets in the US itself. Are such citizens required to report their US investments in India? If yes, what’s the process of doing so?

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