ganeshag
Oct 15, 2009, 01:26 AM
Hi,
I am resident of California and a citizen of Inida. I have been in United states since last 3 years on a temporary work permit (H1B).
I had opened an NRE and NRO (Non Resident Indian ) accounts with CITI Bank India in June 2008 which had cumulative principle amount of around USD 20000 together during year 2008
I came to know recently from few of my friends (and then subsequent search in Internet) , I need to report these accounts to IRS. Accordingly I have sent FBAR form with the details of these accounts and to the address mentioned in the IRS website
I have following question
1. The interest earned on the in the NRO account was Taxed at 30% in India. (I have all the tax deduction proof). Will it again be taxed in US.. Isn't there a Tax treaty between India and US.. I have not included the details of this in my 2008 Tasfiling but included in FBAR. Is that a problem..
2. Interest earned in NRE account is very nominal (6$) . I have not included this as well in my tax filing but included in FBAR. Is that a problem..
2. I saw that 20% principle amount will be deducted as penalty. If this is applicable to my account.. The money I have transferred to this account is my savings on which I have already paid tax in United States. (I have all the transfer proofs and US Tax filing proofs).
I am really confused and all my attempts to contact IRS on this has failed.
I appreciate if you reply to my questions .
Thanks you
Ganesh
I am resident of California and a citizen of Inida. I have been in United states since last 3 years on a temporary work permit (H1B).
I had opened an NRE and NRO (Non Resident Indian ) accounts with CITI Bank India in June 2008 which had cumulative principle amount of around USD 20000 together during year 2008
I came to know recently from few of my friends (and then subsequent search in Internet) , I need to report these accounts to IRS. Accordingly I have sent FBAR form with the details of these accounts and to the address mentioned in the IRS website
I have following question
1. The interest earned on the in the NRO account was Taxed at 30% in India. (I have all the tax deduction proof). Will it again be taxed in US.. Isn't there a Tax treaty between India and US.. I have not included the details of this in my 2008 Tasfiling but included in FBAR. Is that a problem..
2. Interest earned in NRE account is very nominal (6$) . I have not included this as well in my tax filing but included in FBAR. Is that a problem..
2. I saw that 20% principle amount will be deducted as penalty. If this is applicable to my account.. The money I have transferred to this account is my savings on which I have already paid tax in United States. (I have all the transfer proofs and US Tax filing proofs).
I am really confused and all my attempts to contact IRS on this has failed.
I appreciate if you reply to my questions .
Thanks you
Ganesh