The US-India tax corridor is complex — and most US accounting firms are not equipped to handle it. We are. From FBAR and FATCA compliance to US-India treaty planning and transfer pricing, we advise NRIs, Indian-American business owners, and US companies with India operations.
Cross-border compliance we handle
If you are an NRI living and working in the United States, your tax situation involves two tax systems, multiple reporting requirements, and a bilateral treaty that most advisors have never studied in depth. Miss an FBAR filing and the penalty is $10,000 per account, per year — even if it was an honest mistake.
If your US business has Indian operations — a subsidiary, a joint venture, or an intercompany service arrangement — the compliance picture is even more involved. Transfer pricing documentation, Form 5471 reporting, and cross-border payment withholding requirements all carry significant penalty exposure.
Finding an advisor who understands both sides — not just US tax law but how it interacts with Indian tax rules, the DTAA treaty, and RBI/FEMA regulations — is exactly what we built our practice to do.
Seven specialized service areas covering every dimension of US-India cross-border tax compliance and planning.
If you are a US person (citizen, green card holder, or resident) with financial accounts outside the US exceeding $10,000 at any point during the year, you are required to file an FBAR (FinCEN Form 114). FATCA (Form 8938) has separate thresholds and applies to a broader range of foreign financial assets. We prepare both filings accurately and on time, and advise on the reporting requirements for Indian bank accounts, PPF accounts, PF balances, and investment accounts.
The US-India DTAA (Double Taxation Avoidance Agreement) provides significant opportunities to reduce combined US and Indian tax burdens — but only when applied correctly. We analyze your situation under the treaty to identify applicable exemptions, reduced withholding rates, tie-breaker rules for dual residents, and treaty-based positions that need to be reported on your US return. We also advise on the tax residency implications of time spent in India versus the US.
US persons taxed on foreign income by India may be able to offset a portion of that Indian tax against their US tax liability through the foreign tax credit (Form 1116). Proper planning around the foreign tax credit — including basket categorization, limitation calculations, and carryforward and carryback rules — can produce significant tax savings. We model the optimal credit position for each client's situation.
If you own 10% or more of a foreign corporation — including an Indian private limited company — you may be required to file Form 5471 with your US tax return. Penalties for non-filing start at $10,000 per form, per year, and can reach $50,000 for continued failure. We prepare Form 5471 including the required Schedules, Subpart F income calculations, and GILTI (Global Intangible Low-Taxed Income) analysis.
If an Indian individual or entity owns 25% or more of a US corporation, Form 5472 must be filed for any reportable transactions between the US corporation and its foreign owners. Failure-to-file penalties are $25,000 per form. We prepare Form 5472 filings and advise on the documentation required to support reportable transactions, including management fees, loans, and service arrangements.
US businesses with Indian subsidiaries or affiliates are required to conduct intercompany transactions — management fees, royalties, intercompany loans, cost-sharing arrangements — at arm's length prices. We prepare contemporaneous transfer pricing documentation as required under IRC Section 482 and advise on pricing methodologies that withstand IRS scrutiny while optimizing the overall group tax position.
For NRIs managing assets in both India and the US, we provide a comprehensive annual tax package covering: Form 1040 with all relevant schedules, FBAR, FATCA reporting, foreign tax credit, treaty-based positions, and planning advice for major financial events such as property sales in India, inheritance, or repatriation of funds.
US-resident NRIs with Indian bank accounts, PPF, mutual funds, property, or family financial accounts requiring FBAR, FATCA, and treaty analysis.
Business owners with India-connected interests, shareholdings in Indian companies, or family financial accounts requiring Form 5471 and compliance review.
US businesses with Indian subsidiaries, joint ventures, or service arrangements needing Form 5471, Form 5472, or transfer pricing documentation.
Indian companies or investors setting up a US entity and needing initial tax compliance, cross-border structuring advice, and Form 5472 preparation.
NRIs who have inherited Indian property or assets and need US tax guidance on the reporting requirements, tax treatment, and repatriation planning.
Answers to the questions we hear most from NRIs and US-India businesses.
Your first consultation is free. 30 minutes, no obligation, no sales pressure.