US Tax & Reporting for India Assets
FBAR and FATCA: Reporting Indian Bank Accounts to the US
Quick answer
If your Indian and other foreign accounts together exceed $10,000 at any point in the year, file an FBAR (FinCEN Form 114) by April 15, with an automatic extension to October 15. If your foreign assets are larger, also attach Form 8938 to your tax return. These are disclosure forms: filing them does not by itself create tax.
Key numbers
| FBAR threshold | Over $10,000 combined, at any time in the year | Source |
|---|---|---|
| FBAR due date | April 15; automatic extension to October 15 | Source |
| Form 8938, single, living in the US | Over $50,000 on Dec 31 or over $75,000 at any time | Source |
| Form 8938, married filing jointly, living in the US | Over $100,000 on Dec 31 or over $150,000 at any time | Source |
| Form 8938 failure-to-file penalty | Up to $10,000, rising to a potential $60,000 after IRS notice | Source |
Do I have to report my Indian bank accounts to the US?
Yes, if you are a US person and the combined value of your foreign accounts exceeded $10,000 at any time during the year. US persons include citizens, green card holders and others who are US tax residents.
The rule counts accounts in which you have a financial interest or signature authority, so an account in your parents' names where you can sign may count too. IRAs and certain retirement plans are excluded (IRS).
The test is the aggregate of each account's maximum value during the year. Three accounts that peaked at $4,000 each total $12,000, so an FBAR is required even though no single account crossed $10,000.
What is the difference between FBAR and Form 8938?
The FBAR goes to FinCEN and covers foreign accounts over $10,000 combined. Form 8938 goes to the IRS with your tax return, has higher thresholds, and also covers foreign assets held outside accounts.
| FBAR (FinCEN Form 114) | Form 8938 (FATCA) | |
|---|---|---|
| Filed with | FinCEN, electronically via the BSA E-Filing System | IRS, attached to your income tax return |
| Threshold (living in the US) | Over $10,000 combined at any time | Single: over $50,000 at year end or $75,000 at any time. Joint: over $100,000 or $150,000 |
| Covers | Bank, securities and other financial accounts | Accounts plus other specified foreign financial assets |
| Due | April 15, automatic extension to October 15 | With your tax return, including extensions |
Sources: IRS comparison of Form 8938 and FBAR. Many people with Indian accounts file both; filing one does not replace the other.
Which Indian accounts count?
NRE, NRO and FCNR deposits, savings and fixed deposits, and securities accounts such as a demat or broking account all generally count. Indian mutual funds and similar holdings can also be reportable on Form 8938.
- Use each account's highest balance during the calendar year, converted to dollars.
- Include accounts that were open for only part of the year.
- Joint accounts with a spouse or parents count for each owner with a financial interest or signature authority.
When is the FBAR due and how do I file it?
The FBAR is due April 15 after the calendar year it covers, with an automatic extension to October 15; you do not need to request it. It is filed online through FinCEN’s BSA E-Filing System, not with your tax return.
- List every foreign account: bank name, address, account number and type.
- Find each account's maximum value in the year and convert to dollars.
- File FinCEN Form 114 online through the BSA E-Filing System.
- Keep your records for five years from the FBAR due date (IRS).
What happens if I missed an FBAR or Form 8938?
Penalties can be steep, which is why late filers should act before the IRS contacts them. Form 8938 penalties start at up to $10,000 and can reach $60,000 after an IRS notice, and FBAR penalties are higher for willful violations.
The IRS lists Form 8938 penalties of up to $10,000 for failure to disclose, plus up to $10,000 for each 30 days of non-filing after notice, to a potential maximum of $60,000. FBAR civil penalties are adjusted for inflation each year and are far higher for willful violations (IRS). If you missed past years, speak to a CPA or Enrolled Agent about the IRS's streamlined and delinquent-filing procedures before filing anything.
Every January
- List all Indian and other foreign accounts
- Record each account’s maximum balance for the year
- Total them: over $10,000 means an FBAR
- Check Form 8938 thresholds for your filing status
- File FBAR online by April 15 (October 15 at the latest)
Frequently asked questions
Does filing an FBAR mean I owe tax?
No. The FBAR is a disclosure. Tax is driven by the income those accounts earn, which goes on your Form 1040.
I am on an H-1B. Do these rules apply to me?
If you are a US tax resident (for example under the substantial presence test), you are generally a US person for these rules. Check your residency status with a tax professional if you are unsure.
What exchange rate do I use?
Use the Treasury’s year-end exchange rate for the reporting year, as the FBAR instructions direct, and apply it consistently.