I am a US Citizen but I have inherited property in India which produces rental income. What are my tax implications due to this in US? Do I have to report this on my annual tax returns? Do I need to submit any special forms to disclose this?

Yes, you must report the rental income (and all expenses) using Schedule E, which is filed with Form 1040.

Recommend you get professional tax help; contact me at [email protected] if you want my help.