NRI & India tax
Do You Need to Report Indian Bank Accounts and FDs to the IRS?
By the Elite B Tax Services team 6 min readUpdated October 1, 2026
The short answer
Yes — if you are a U.S. tax resident, your accounts in India usually have to be reported, and the income from them taxed. Reporting happens on up to two forms (FBAR and Form 8938) depending on balances, and the interest, dividends and gains go on your U.S. tax return — even when they were tax-free or already taxed in India.
Two separate questions: reporting and tax
Many people mix these up. Reporting means telling the U.S. government the accounts exist. Tax means paying U.S. tax on the income those accounts earn. You can owe one without the other.
| Question | What applies |
|---|---|
| Do I list the account? | FBAR if all foreign accounts together exceed $10,000 at any time in the year; Form 8938 if you cross its higher thresholds |
| Do I pay U.S. tax on the income? | Generally yes — interest, dividends, rent and capital gains from India go on your U.S. return |
| Is Indian tax credited? | Often yes, through the foreign tax credit and the India–U.S. tax treaty, depending on the income |
NRO, NRE and FCNR accounts
- NRO account: interest is taxed in India (tax is usually deducted at source) and is also reportable on your U.S. return. The Indian tax can often be claimed as a credit.
- NRE account: interest is tax-free in India, but it is still taxable income in the U.S. for a U.S. tax resident.
- FCNR deposits: same idea — the interest is generally taxable in the U.S., and the account is reportable.
“Tax-free in India” does not mean tax-free in the U.S. This is one of the most common mistakes we fix.
Fixed and recurring deposits
Fixed deposits and recurring deposits are financial accounts: they count toward the FBAR $10,000 total and may count for Form 8938. The interest is generally taxable in the U.S. in the year it is earned — even if it is only paid out when the deposit matures.
What happens if I never reported?
You are not alone — many people learn about these rules years after moving to the U.S. The IRS offers ways to catch up, and the right path depends on whether the income was reported and why the forms were missed. Acting before the IRS contacts you keeps the most options open.
- List every Indian account and investment you've had in the last six years.
- Gather year-end and highest balances, and the interest or gains for each year.
- Let us check which forms were required and which procedure fits.
- We prepare the missing FBARs, forms and any amended returns.
Sources: IRS — Report of Foreign Bank and Financial Accounts (FBAR) · IRS — Comparison of Form 8938 and FBAR requirements · IRS — FATCA information for individuals
This guide is general information, not tax or legal advice for your situation. Rules and inflation-adjusted amounts change — contact us before you file. Read our disclaimer and editorial policy.