PROTECT · VOLUME 1 OF 3 · FOUNDATIONSMoney for Indians in the US shelf
Two-Country Money
The first book for an Indian household in the US with money in both countries. It explains how each country decides who is a resident, what NRE, NRO and FCNR accounts are and how each is taxed on both sides, what the IRS wants to know about Indian accounts, how to send money across the border, and how the treaty and the foreign tax credit stop one rupee being taxed twice. Every Indian rule is dated and sourced to the Act, the Reserve Bank or the Income Tax Department.
Chapters8
Reading time50 min
Worked examples8
Updated2026-10-02
What you will be able to do
- Name your status in the US tax system, the Indian tax system and the foreign exchange rules, and explain why they can differ.
- Choose between NRE, NRO and FCNR(B) money for each purpose and say what each country taxes.
- List the Indian holdings that go on the FBAR and Form 8938, convert them at the right rate and decide what to do about a missed year.
- Move money between the two countries with the right account, paperwork and gift records, and tell the NRO limit, the Liberalised Remittance Scheme and tax collected at source apart.
- Keep a one-page account list and a two-country calendar, and work through the order in which to tidy up.
Contents
8 CHAPTERS · ABOUT 50 MIN- 01Two Tax Systems, One Household Who counts as a resident in the US and in India, what NRI, NR, RNOR and ROR mean, how the foreign exchange test differs from both tax tests, and why one person can sit in different boxes in each country.7 min1 computed
- 02NRE, NRO and FCNR Accounts What each account is for, how India taxes its interest and how the US does, why the Indian exemption does not travel to the US return, how the treaty rate works on NRO interest, and what happens to each account when you move back.7 min3 computed
- 03Reporting Your Indian Accounts to the IRS Which Indian holdings go on the FBAR and Form 8938, the thresholds, the year-end Treasury rate to convert at, how the IRS learns about Indian accounts, the PPF, EPF and NPS question, and what to do about years you missed.6 min
- 04Sending Money Across the Border How money moves between the US and India, which account to use, what a transfer really costs, the difference between the NRO limit, the Liberalised Remittance Scheme and tax collected at source, and when a gift needs a form.7 min1 computed
- 05The Treaty and the Foreign Tax Credit How the India-US tax treaty and the foreign tax credit work together, what the treaty caps, why the saving clause limits it for US residents, how the credit treats NRO interest, and what neither tool covers.7 min2 computed
- 06Indian Funds and Shares for a US Taxpayer Why Indian mutual funds fall under the harshest US rules while directly held shares do not, how India taxes the same gains, and what that means for how you hold, add to or sell Indian investments.6 min1 computed
- 07The Paperwork: PAN, SSN, KYC and Residency Certificates The identity and tax documents each country asks for, how a missing PAN raises the tax deducted, the residency certificate and form that unlock the treaty rate, and how to keep both countries' records consistent.6 min
- 08A Two-Country Money Map Putting it together: one list of every account with what each country asks about it, a dated calendar of deadlines in both countries, and the order in which to tidy up, repeated each April.5 min
CALCULATORS USED IN THIS BOOK