Report Indian income on your 1040
Rent, NRO interest, dividends and gains are all US-taxable — and NRE interest is taxable in the US even though it's exempt in India.
NRIs in the USA · India + US tax
NRI tax filing from the USA, done properly.
Living in the USA, with income or assets back in India? We file your Indian return, apply every India-US treaty benefit, and line it up with your US obligations — so nothing is taxed twice and nothing is missed.
India + US both sides handledTreaty rates TRC & Form 10FNo double tax credit claimed right
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At a glance
Tax filing from the USA
Your TRCIRS Form 6166 (~45–60 days)
NRO interest TDS30% → 15% with treaty
Dividends20% → 15–25%
India ITR due31 July
The situation
Two tax systems, one clean answer
As an NRI in the USA, India taxes your India-source income — rent, NRO interest, dividends, capital gains — while US taxes your worldwide income. The trick isn't filing one return; it's making both agree, claiming the treaty rate at source, and preserving your credit. Get it wrong and you either overpay or invite a notice. Not sure of your status this year? Start with the residential-status calculator.
The US side
You also file in the US — and the two systems don't line up
The US taxes its residents and citizens on worldwide income, so your Indian income has a second home on Form 1040. Getting the two returns to agree is where most of the risk sits.
FBAR (FinCEN 114)
If your Indian accounts together top $10,000 at any point in the year, you file an FBAR — separately from your 1040, with FinCEN. Penalties for missing it are steep.
Form 8938 (FATCA)
Specified foreign assets above $50k year-end / $75k anytime (single, US-resident) go on Form 8938 with your 1040. India already reports your accounts to the IRS under FATCA.
Foreign Tax Credit — claim it properly
Indian tax you've paid becomes a credit on Form 1116, so you aren't taxed twice. But you must file Form 67 in India or the DTAA credit is lost.
The PFIC trap
Indian mutual funds are PFICs under US law — punitive tax plus a Form 8621 per fund. Direct Indian stocks are fine. We flag this before it costs you.
India-US DTAA
What the treaty saves you
| Indian income | Standard NRI TDS | Treaty rate (with TRC + 10F) |
|---|---|---|
| NRO account interest | 30% | 15% |
| Dividends (Indian companies) | 20% | 15–25% |
| Royalty / technical fees | 20–30% | 15% |
Rates apply with a valid TRC + Form 10F filed before payment. NRE/FCNR interest is exempt in India regardless; immovable-property gains are taxed in India regardless of treaty.
Confirm your residential status
We fix whether you're NRI, RNOR or resident this year — it decides everything else.
Map the treaty & get your TRC + Form 10F
We identify your India-US treaty rates and get the paperwork in before payment, so TDS is right at source.
Reconcile 26AS/AIS and file ITR-2/3
We match your Indian income to the department's records and file the correct return.
Coordinate the US side & your refund
We line the return up with your US filing and claim back any excess TDS.
Key things to know
NRIs in the USA — the essentials
The points that decide your bill and keep you out of trouble.
The Section 87A rebate isn't for NRIs
The headline 'no tax up to ₹12 lakh' is residents-only — as an NRI you're taxed from the first rupee above the exemption.
You use ITR-2 or ITR-3
NRIs can't file ITR-1. It's ITR-2 (salary/property/capital gains) or ITR-3 (business income).
Treaty relief needs Form 10F — filed first
A IRS Form 6166 alone isn't enough; Form 10F must be e-filed, ideally before income is paid. See our DTAA & Form 10F guide.
Related
Keep going
NRI tax filing (all NRIs)
The full service, wherever you live.
Learn more →DTAA, Form 10F & TRC
How treaty relief actually works.
Learn more →Sell property from the USA
Selling India property from the USA? Start here.
Learn more →Questions
NRI tax in the USA, answered
Do I have to file in both India and the US?
Usually yes. India taxes your India-source income; the US taxes your worldwide income. You file an Indian ITR (ITR-2/3) and a US 1040, and use the Foreign Tax Credit so the same income isn't taxed twice.
What's the deal with FBAR and FATCA?
FBAR (FinCEN 114) is required if your foreign accounts together exceed $10,000 at any time — filed separately from your 1040. Form 8938 (FATCA) is filed with your 1040 above $50k/$75k. Both can apply to the same accounts.
Are my Indian mutual funds a problem?
Often, yes — the IRS treats them as PFICs, with punitive tax and a Form 8621 per fund. Direct Indian stocks aren't PFICs. We flag your holdings and coordinate with your US preparer.
How do I get my NRO TDS down from 30%?
Give your bank IRS Form 6166 (US TRC) and Form 10F before interest is paid — the India-US treaty caps it at 15%. We set this up.
Start free
Filing from the USA? Let's get it right.
Tell us your Indian income and your US situation. We'll map the treaty, handle the Indian return, and coordinate the US side — free review first, fixed fee before anything begins.
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