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Old 04-23-2014, 07:16 PM
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NRI FD's Taxes

I was wondering how taxes would be calculated if i had a Non Resident Indian Fixed deposit, in india. This will be a USD Fixed Deposit from my savings from the US.

1. Will i need to pay taxes on these deposits in my US tax returns?

2. If my bank in india charges me Tax Deductions at Source (TDS) for these deposits? Do i still need to pay taxes in the US? or will i just have to declare these accounts and show TDS details.
What documentation will be needed at the end of the year when i'm doing taxes for this?

Thanks in advance..



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Old 04-23-2014, 10:38 PM
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Join Date: Oct 2010
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Originally Posted by taxnoob85 View Post
I was wondering how taxes would be calculated if i had a Non Resident Indian Fixed deposit, in india. This will be a USD Fixed Deposit from my savings from the US.

1. Will i need to pay taxes on these deposits in my US tax returns?

2. If my bank in india charges me Tax Deductions at Source (TDS) for these deposits? Do i still need to pay taxes in the US? or will i just have to declare these accounts and show TDS details.
What documentation will be needed at the end of the year when i'm doing taxes for this?

Thanks in advance..
1. Will i need to pay taxes on these deposits in my US tax returns?===>>>>>>>>>>>Unless you are a US resident for tax purposes, you are not subject to any US tax on your deposit in your bank acct in India;however, if you are a USresident even for tax purposes then you must report interest income generated from your acct in India;also you must file form td f 90.22.1 with the IRS aslongas the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year . The FBAR is a calendar year report and must be filed on or before June 30 of the year following the calendar year being reported.

2. If my bank in india charges me Tax Deductions at Source (TDS) for these deposits? Do i still need to pay taxes in the US? or will i just have to declare these accounts and show TDS details.========>>>>>>>>>>>as mentioned above it depends.
What documentation will be needed at the end of the year when i'm doing taxes for this?=====>>>>>>>>>>>>if you need to pay tax on your interest income generated from your bank acct in india then you ned to report it on Line 8b of Form 1040 (or Line 8b of Form 1040-A). if your interest income is more than $1,500. Instead, you must use Form 1040A or Form 1040. . Using Schedule B is required if you have over $1,500 in interest and/or dividends



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