US Bank account

POSTED BY Srinivasan Jambunathan ON September 13, 2012 5:43 pm COMMENTS (2)

Dear Forum members,

I have been having a account with a US Bank for close to 10 yrs. I have to travel to US on work on and off and my salary in the US gets credited to this account. 

1. I am not a NRI

2. The money in this account does not earn any interest.

3. I usually maintain a balance of around $1000-1500 in it which I either use during my next visit to the US (or) sometimes I get that transfered to my bank account in India whenever I need it.

4. I have filed US tax returns for the amount earned in the US.

Questions:

1. Is it ok for a non-NRI to maintain an active bank account in the US. Any tax issues / complications?

2. Should foreign accounts be declared anywhere while filing tax returns. Is this mandatory? I have not seen this in the regular itr forms (may be I am incorrect)

Please let me know your inputs based on which I will decide if I need to close that account.

Thanks,

Srinivasan

2 replies on this article “US Bank account”

  1. srinivasan j says:

    Dear BanyanFA,

    Thank you for the inputs.

    Thanks,
    Srinivasan

  2. BanyanFA says:

    Hi,
    It is not illegal for Non-NRI to maintain bank accounts in US (from India’s perspective). With regards from US perspective, as long as you have notified them of your address – it should not be a problem.

    With regards to Indian Taxation – you would need to disclose your US bank details, balances, etc. in your Indian tax returns. This is a new provision from this year. I don’t anticipate that it would result in any big tax issues, considering you won’t have hugh balances in that account. As long as you disclose your US salary in India (considering you are Resident in India), youshould be fine.

    Regards
    Banyan Financial Advisors

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today