Indian’s in the U.S. Have to Declare Offshore Accounts

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Mar. 4 – A new U.S. tax regulation has made it mandatory for non-resident individuals or corporates who have a significant business in the country to disclose their offshore accounts. The internal revenue service says that non-residents need do declare offshore accounts if they exceed US$10,000. This amendment is expected to impact a majority of Indians, who either work, have business interests or whose subsidiaries are registered in the U.S.

This amendment is likely to cover a large population of Indian IT and other professionals working in the US, who will have to file details of their bank accounts henceforth or face penalty. Indian companies doing business in the US would also need to be aware of and comply with this regulation,” partner in Ernst & Young Amitabh Singh told Deepshikha Sikarwar of The Economic Times.

Indians going on work visas like L-1 or H1B and short-term business travelers to the US would be required to declare their bank accounts in India.

The amendment was earlier enforced in 2008 follows the American government wanting to curb offshore tax evasion and was meant only for US citizens and green card holders.