NRI Tax services
Taxation of Wealth Assets for NRIs
keep more of what you earn
Understand how India and the US tax your wealth
- NRI with NRE/NRO accounts
- Investor in Indian stocks & mutual funds
- Real Estate
- 401(k)
- Roth IRA
- Estate Tax
- Real estate owner in India
- US green card holder with Indian assets
- Returning NRI with US retirement accounts
then plans start at $199
Why wealth tax is different for NRIs
You don't have a tax problem. You have a coordination problem
India and the US each have their own rules for taxing interest, capital gains, dividends, rental income, and inheritance.
The trap: What’s tax-free in India (NRE interest, PPF) is NOT automatically tax-free in the US. And what’s tax-free in the US (Roth IRA withdrawals) may be taxable in India.
We map your specific assets to the specific tax rules of each country – and show you exactly what you owe, where, and when.
What's Included
- Asset-by-asset tax mapping (India & US)
- Interest, capital gains, dividend tax calculation
- FBAR, FATCA, PFIC filing exposure
- Estate & gift tax analysis (US trap for NRIs)
- Written exposure report with action items
- Free first consultation - 45 min
Estimated time
2–3 weeks
Docs needed
5–8 documents
Countries covered
India, United States
Starting price
$199 (after free consult)
The core question we answer:
For each of your assets – NRE FD, Indian stock, mutual fund, real estate, 401(k), Roth IRA – we tell you: Who taxes it? At what rate? When? And how do you report it? No generic advice. Asset-by-asset.
Question
Answer
Tax in India
Interest is tax-free. No TDS deducted.
Tax in US (if US person)
Fully taxable as ordinary income. Report on FBAR + FATCA.
nriexperts.com warning
Many NRIs assume "tax-free in India" means "tax-free everywhere." Wrong. The IRS taxes NRE interest at your marginal rate (10-37%).
Example: NRE FD balance $200,000 @ 4% = $8,000 interest
India tax: $0 | US tax (24% bracket): $1,920 | After-tax return: 3.04%
Question
Answer
Tax in India
Interest fully taxable. TDS deducted at 30% + surcharge (~34%).
Tax in US (if US person)
Interest also taxable in US. Foreign Tax Credit (Form 1116) offsets India TDS.
nriexperts.com recommendation
Minimize NRO balances. Combined tax rate often exceeds 40%.
Question
Answer
Tax in India
Equity: LTCG 10% over ₹1L, STCG 15%. Debt: LTCG 20% with indexation.
Tax in US (if US person)
PFIC nightmare. Each fund requires Form 8621. Punitive tax rates (37% + interest).
nriexperts.com warning
Do not hold Indian mutual funds if you are a US person. Use direct Indian stocks instead.
PFIC Example: Invest ₹10L in Indian fund → grows to ₹15L (₹5L gain). Without MTM election, IRS may tax the entire ₹15L as ordinary income + interest. Effective tax rate: 50-60%+ of gains.
Question
Answer
Tax in India
LTCG (>12 months): 10% over ₹1L. STCG: 15%.
Tax in US (if US person)
No PFIC issue. Normal foreign stock. Dividends: ordinary income. Capital gains: 0-20%.
nriexperts.com recommendation
Preferred equity exposure for US persons who want India allocation.
Question
Answer
Rental Income Tax
India: slab rates (up to 39%) with 30% standard deduction. US: taxable with FTC.
Sale / Capital Gains
India LTCG: 12.5% (no indexation) OR 20% (with indexation). TDS deducted by buyer.
nriexperts.com tip
Lower TDS certificate (Section 197) can reduce TDS before sale. Apply 4-6 weeks before closing.
Question
Answer
Tax in India
Tax-free – interest and maturity.
Tax in US (if US person)
Fully taxable. Interest accrues annually. Report on FBAR/FATCA.
nriexperts.com warning
Many NRIs open PPF thinking it's globally tax-free. The IRS disagrees. Consider closing PPF before becoming US person.
Question
Answer
Tax in India
Taxed as ordinary income upon withdrawal. 20% mandatory withholding.
Tax in India (if Indian resident)
India taxes withdrawals as income. US-India Tax Treaty (Article 21) provides relief.
nriexperts.com strategy
Plan withdrawals for low-income years. Consider Roth conversions before moving to India.
Example:401(k) withdrawal after moving to India: $50,000
US withholding: 20% ($10,000) | India tax (30%): $15,000 | FTC: $10,000 | Net India tax: $5,000 | Total tax: 30%
Question
Answer
Tax in India
Qualified withdrawals are tax-free.
Tax in US (if US person)
Treaty silent. Indian tax authorities may treat withdrawals as taxable. Position is unclear.
nriexperts.com recommendation
Withdraw Roth IRA funds before becoming Indian resident. Or consult a tax attorney.
Question
Answer
Tax in India
Dividends: 15-20%. Capital gains: 0%, 15%, or 20%.
Tax in US (if US person)
Dividends and capital gains taxable in India. FTC available for US tax on dividends.
nriexperts.com strategy
Before moving to India, consider selling and repurchasing to reset cost basis.
Question
Answer
Tax in India
Rental income: ordinary rates. Sale: capital gains. FIRPTA applies (15% withholding for non-residents).
Tax in US (if US person)
Rental income and sale gain taxable in India with FTC.
nriexperts.com warning
Sell before moving to India if possible. FIRPTA withholding is a cash flow nightmare.
Estate & Wealth Transfer Taxation + Common Traps
Aspect
India
United States
Estate / Inheritance Tax
None (abolished in 1985)
Federal estate tax: 40% above $13.61 million (2024)
Gift Tax
None on gifts to relatives
Annual exclusion: $18,000 per donee (2024)
Applicable to NRIs?
Yes, for Indian assets
Yes, for US-situs assets. Critical trap for NRIs.
Trap
Who It Affects
Consequence
Solution
PFIC
US persons holding Indian mutual funds
37%+ tax + interest + complex filing
Sell before becoming US person. Use direct stocks.
US Estate Tax
NRIs with >$60k in US-situs assets
40% estate tax on excess
Restructure holdings. Keep US assets below threshold.
401(k) double tax
Returning NRIs
Taxed in both countries on withdrawal
Plan withdrawals. Roth convert before moving.
NRE FD US tax
US persons with NRE FDs
Interest taxed at ordinary rates in US
Compare after-tax returns. Consider alternatives.
PPF US tax
US persons with PPF
Interest taxable annually in US
Close PPF before becoming US person.
Cross-Border Wealth Tax Comparison
- Cash/FDs: Hold where you pay lower interest tax.
- Equities (Growth): US LTCG rates (0-20%) lower than India (10%+). But India has no estate tax.
- Real Estate: Hold where you live. Cross-border real estate is tax-inefficient.
- Retirement (401k/IRA): US (if you remain US resident). Withdrawals after moving create double-tax risk.
Enquire About Taxation of Wealth & Assets for NRIs
Pricing
🎧 First consultation free — then plans start at $199
Basic Tax Exposure
$199.00
For NRIs with straightforward asset
- Asset-by-asset tax mapping
- India & US tax exposure
- Written summary report
Comprehensive Analysis
$399.00
- FBAR + Form 8938 (FATCA)
- Reporting of all foreign accounts
- Review for India-US treaty benefits
Full Tax Coordination
$599.00
- Everything in Comprehensive
- Form 8621 preparation (up to 5 funds)
- Coordination with your tax preparer
- Pre-move restructuring roadmap
Common Questions
Frequently Asked Questions
Find answers to commonly asked questions about our services and how we can help you with your NRI Tax needs.
Is the first consultation really free?
Yes. 45 minutes, no obligation. We'll review your assets and tell you which ones are creating tax exposure – before you pay anything.
I'm a US green card holder. Do I need to report my Indian PPF?
Yes. You can execute a will in your country of residence for Indian assets. However, it must comply with Indian Succession Act requirements. We can help draft it to be valid in both countries.
What's the difference between NRE and NRO for tax purposes?
NRE interest: tax-free in India, taxable in US. NRO interest: taxable in both countries (with FTC relief). NRO also has repatriation limits.
What is the US estate tax trap for NRIs?
If you die holding more than $60,000 in US-situs assets, your estate owes 40% tax on the excess. Many NRIs don't know this until it's too late.
Should I close my Indian mutual funds before becoming a US person?
Yes. Once you become a US person, Indian mutual funds become PFICs. The compliance and tax cost are severe. Sell them before your US tax residency starts.
How does India tax my US 401(k) after I move back?
As ordinary income in the year you withdraw. The US-India treaty provides some relief, but planning is essential.
Can nriexperts.com help me file my taxes?
We provide tax analysis, exposure reports, and form preparation (FBAR, FATCA, PFIC). For full tax return filing, we can refer you to partner CPAs.