Your Financial Dashboard
This dashboard summarizes your unique financial situation: earning a salary in the U.S. while managing multiple income streams from India. The core challenge is navigating the tax rules of both countries simultaneously.
U.S. Income & Taxation
Your U.S. salary is taxed exclusively in the United States. However, your U.S. citizenship means you must also report all your Indian income to the IRS.
Indian Income & Taxation
As an NRI, only your Indian-sourced income (rent, capital gains from property/stocks) is taxed in India. Your U.S. salary is not taxable in India.
The Core Challenge
Your Indian income is taxed by both countries. The key to avoiding double taxation is the U.S. Foreign Tax Credit (FTC), which reduces your U.S. tax bill by the amount of tax you've paid to India.
Critical Compliance Hub: Foreign Asset Reporting
Separate from income tax, the U.S. government requires you to report your foreign financial assets. These are informational filings with severe penalties for failure to comply. Accuracy is crucial due to automatic data exchange between the U.S. and India.
| Attribute | FBAR (FinCEN Form 114) | FATCA (IRS Form 8938) |
|---|---|---|
| Governing Agency | FinCEN (Treasury Dept.) | IRS |
| Filing Threshold | Aggregate value of all foreign accounts exceeds **$10,000** at any time. | Assets over **$50,000** (end of year) or **$75,000** (any time) for singles living in the U.S. |
| What's Reported | Foreign financial *accounts* (Bank, Brokerage, Mutual Funds). | Specified foreign financial *assets* (includes accounts + assets like foreign stock not in an account). |
| How to File | **Separately** from tax return via FinCEN's online system. | **Attached to** your Form 1040 tax return. |
| Primary Penalty | Willful: Greater of $100,000 or 50% of account balance. | $10,000+ failure-to-file penalty. |
Income & Credit Explorer
Select an Indian income type to see a side-by-side comparison of the rules in both countries and understand how the Foreign Tax Credit works to prevent double taxation.
Exemption Trap Simulator for Property Sale
The biggest trap for U.S. citizens is using Indian tax exemptions (like Sec. 54/54F) when selling property. While this saves tax in India, it can create a large, unexpected tax bill in the U.S. because no Foreign Tax Credit is generated. Use this simulator to see the impact.
Simulate Your Capital Gain
Adjust the slider to your estimated long-term capital gain from an Indian property sale to see how your net proceeds change depending on your strategy.
$250,000
Note: Chart assumes a 20% LTCG tax rate in India and a 15% qualified LTCG rate in the U.S. for illustrative purposes. Actual rates may vary.