For Indians with US income, RSUs, ESPP, US stocks, 401(k)/IRA, or US-based assets. We handle the India-side compliance — Schedule FA, DTAA, Form 67 foreign tax credit, repatriation, and the planning around your return to India.
If any of the following describes your situation, your Indian return needs careful handling — and the wrong approach can mean double taxation or non-disclosure penalties.
Indian tax residents are taxed on their global income. If you receive US-source salary, RSU/ESPP/ISO/NSO benefits, US stock capital gains, dividends, or rental income, all of it must be reported in your Indian ITR — and the US tax already paid can be claimed as a foreign tax credit under the India-US DTAA.
Returning from the US is one of the highest-stakes transitions in personal tax. Once you trigger Indian residency, your global income — including 401(k), IRA, brokerage accounts, and US property — comes under India's tax net unless RNOR planning is done correctly.
Under Section 6(6) of the Income Tax Act, you may qualify as Resident but Not Ordinarily Resident (RNOR) for up to two financial years post-return — during which your foreign income remains outside Indian tax. Timing your move and asset rebalancing is critical here.
Schedule FA in ITR-2/ITR-3 requires disclosure of all foreign bank accounts, financial interests, immovable property, equity holdings, custodial accounts, trusts, and signatory authorities. Non-disclosure attracts penalties under the Black Money Act, 2015 — including a flat penalty of Rs. 10 lakh per non-disclosed asset.
Stock-based compensation is one of the most mishandled areas in cross-border tax. Vesting events, exercise events, and sale events each have separate Indian tax consequences — and FMV computation, capital gains classification (short-term vs long-term under Indian law, which differs from US holding periods), and DTAA credit on US withholding all require careful coordination.
India-side compliance for clients with US connections, handled remotely with full coordination across time zones.
Preparation and filing of ITR-2/ITR-3 with full reporting of US salary, RSU/ESPP, dividends, capital gains, and other US-source income. We compute INR equivalents at SBI TT buying rates and apply correct DTAA classification.
ITR-2 / ITR-3End-to-end tax planning for stock-based compensation — vesting taxation as perquisite, cost basis tracking, FMV at vest/exercise, capital gains on sale, and avoidance of double taxation through proper Form 67 filing.
Equity CompensationApplication of the India-US Double Taxation Avoidance Agreement to claim credit for US federal and state taxes already paid. Includes Form 67 filing before the ITR due date — a hard procedural requirement to claim FTC.
DTAA / Form 67Accurate completion of Schedule FA covering US bank accounts, brokerage holdings, RSU vested but unsold, 401(k)/IRA balances, custodial accounts, and any signatory authority. We ensure no Black Money Act exposure.
Schedule FAComputation of short-term and long-term capital gains under Indian law on sale of US listed equities and ETFs. Includes correct application of indexation where applicable, treaty relief, and reporting in Schedule CG.
Schedule CGAdvisory on the Indian tax treatment of US retirement accounts during your residency in India — including the often-misunderstood DTAA position on accruals, distributions, and rollover events.
Retirement AccountsCA certification for outward remittance of funds from Indian accounts to your US accounts. Form 146 issuance, Form 145 filing, tax clearance verification, and bank-side coordination — under the Income-tax Act, 2025 (Rule 220 of the 2026 Rules); replaces earlier Form 15CA / 15CB.
Form 145 / 146Timing of your return for optimal residential status, a multi-year RNOR roadmap, restructuring of US brokerage and retirement holdings, NRE/NRO conversion planning, and a full transition plan to Resident taxpayer status.
Relocation AdvisoryThese are the situations we handle most frequently. If yours matches any of them, we already have the playbook in place.
The FMV of vested shares is taxable as perquisite under Indian salary rules, even though the US employer also reports it on your W-2. We coordinate the dual reporting, claim Form 67 credit for US federal/state withholding, and ensure your cost basis is correctly recorded for the eventual sale.
Capital gains on US-listed shares are taxed in India under Section 112/112A logic — short-term vs long-term thresholds differ from US rules. We compute INR-denominated gains, apply correct rates, and claim DTAA relief for any US tax withheld.
If you are paid in USD by a US entity while physically in India, the salary is fully taxable in India regardless of where it is credited. We ensure correct reporting, advance tax planning, FBAR coordination on the US side, and avoidance of permanent establishment issues for the employer.
The first 2-3 financial years post-return typically qualify as RNOR — during which your 401(k) accruals and US brokerage gains remain non-taxable in India. We map out the full RNOR window, plan distributions and rollovers within it, and structure the eventual transition to Resident status.
The Black Money Act, 2015 carries severe penalties — Rs. 10 lakh per non-disclosed asset and potential prosecution. We assess your specific exposure, file revised or belated returns where the window is open, and prepare a voluntary disclosure narrative if a notice has already been issued. Acting before a notice is always materially better than acting after.
We have built a specific practice around the technical and timing complexity of US-India tax — not as an afterthought to a domestic ITR practice.
We coordinate with US-based clients over WhatsApp, email, and video calls scheduled in your local US time. No need to be awake at India business hours for routine matters.
Working knowledge of the India-US treaty — including Articles 11 (interest), 13 (capital gains), 16 (dependent personal services), 17 (independent personal services), 22 (other income), and the saving clause that limits treaty benefits for US citizens.
Form 67 is a procedural pre-condition for claiming foreign tax credit and must be filed on or before the ITR due date. We track this aggressively — missing it can mean losing FTC entirely for that year.
We focus on the India side. If you have a US CPA handling your 1040, FBAR, FATCA Form 8938, and state returns, we coordinate directly with them on cost basis, withholding amounts, and timing of distributions.
The questions our US-connected clients ask most often — RSUs, FBAR, 401(k), DTAA, and returning-NRI scenarios. Send specifics on WhatsApp for anything not covered.
On vest, the FMV of vested shares is a perquisite added to your salary income (under the corresponding salary provisions of the Income-tax Act, 2025; earlier Section 17(2)) — the Indian employer typically grosses this up and deducts TDS. On sale, the gain (sale price − FMV at vest, in INR) is a capital gain — long-term if held more than 24 months. US federal tax withheld is creditable via Form 67 under the India-US DTAA. We reconcile the Form 16 perquisite, broker statements (Schwab / E*TRADE / Fidelity), and the 1099-B before computing Schedule FSI / TR / CG.
Yes — Article 25 of the India-US DTAA allows Foreign Tax Credit for US federal tax (and certain state taxes) on the same income, capped at the Indian tax attributable. Form 67 must be filed on or before the ITR due date — missing this deadline forfeits the credit for that year. Supporting documents: Form 1040 + W-2 / 1099 + state filings + tax payment proof. We file Form 67, compute the credit, and reflect it in Schedule TR.
FBAR (FinCEN 114) and FATCA (Form 8938) are US disclosure obligations on foreign (i.e., Indian) accounts above thresholds — they are filed in the US, not India. From the Indian side, the equivalent disclosure is Schedule FA for US accounts (bank, brokerage, retirement) if you are Indian Resident and Ordinarily Resident. Reporting on both sides must reconcile — we coordinate with your US tax preparer on numbers and timing.
This is the single most misunderstood area. While you are Indian-resident: contributions are not deductible in India; accruals inside the account are not taxed in India (per Article 11 / 17 of the India-US DTAA position followed by leading rulings); distributions are taxable as 'Income from Other Sources' in the year received, with US withholding creditable via Form 67. Roth distributions remain US-tax-free but are still includible in Indian income — DTAA does not exempt them on the Indian side. We map distribution timing to your residency status.
Yes, time it carefully. RNOR under Section 6(6) gives you up to 2-3 years where US-source income (1099 interest, dividends, IRA distributions, sale of US stocks) is not taxed in India. The qualifying tests are technical — non-resident in 9 of 10 preceding years OR less than 729 days in India in 7 preceding years. Timing your return by even a few weeks can extend the RNOR window by a full year. We model both scenarios on your actual stay history.
US single-member LLCs are 'disregarded entities' for US tax (income flows to the owner's 1040). For Indian purposes, the LLC is typically treated as a foreign company — but its profits may be attributed to you under the controlled-foreign-entity / POEM tests if effective management is in India. Schedule FA disclosure is mandatory. The interaction with Section 9 source rules and POEM (Place of Effective Management) is fact-specific — we assess before you trigger Indian residency.
Article 13 of the India-US DTAA does not allocate exclusive taxing rights for capital gains on US-listed equities to either country — both can tax. Practically: the gain is fully taxable in India (12.5 % LTCG with no indexation post-Budget 2024 for shares held more than 24 months; STCG at slab). US tax (typically 0 % for non-resident sellers of US stocks) is creditable to the extent paid. We file Schedule CG correctly with broker statements and the cost-basis history.
Depends on residency. If you spent more than 182 days in India in the FY, or the 60+365 rule is met, you are an Indian resident and must file an Indian ITR disclosing global income (including US salary). If you are non-resident in India for the FY, you only file if you have India-source income (rent, capital gains on Indian property, NRO interest). We confirm your status year-by-year before scoping the engagement.
Whether it is RSU vesting, a return-to-India plan, a Schedule FA correction, or a routine ITR with US income — book a focused consultation with CA Kuldeep Pandey.
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