Foreign Bank account
Asked Feb 10, 2010, 11:43 AM
I am on H1 visa in USA. I have a NRE account in India in which I transfer money into. The money gets converted into INR after it has been credited to my account in India. I do not receive any kind on documentation (1099-INT or likewise) showing the interest earned on that interest bearing account. Income tax is exempt on interest earned in NRE accounts.
1.) Do I need to declare the account's amount on form TD F 90.22-1 if it is more than $10K at any time during the year.
2.) Do I need to declare the interest earned on that account?
If I do declare it and I pay to extra taxes, doesn't it mean I am paying taxes on amounts that I am already declaring as part of my earnings and have already paid taxes on.
Apologies, if I am confusing the questions or wording it wrong. I am not well versed with tax terminologies. Thanks in advance for helping me.