FBAR & FATCA: Your US Filing Obligations After Returning to India

Returning to India does not end your FBAR or FATCA filing obligations. Missed filings carry penalties of 0,000+ per account per year — even for innocent omissions.

Why This Matters Even After You Leave

If you held a US green card or were a US tax resident at any point during the year, FBAR and FATCA reporting obligations follow you to India. Many H1B holders assume that surrendering the visa and moving back ends US filing duties — it doesn't. Penalties for missed filings start at 0,000 per account per year for non-wilful omissions and can reach 00,000 or 50% of account value for wilful violations.

FBAR (FinCEN Form 114)

If you are a US person and the aggregate value of your foreign (i.e., non-US) financial accounts exceeded 0,000 at any point during the calendar year, you must file FBAR by April 15 (automatic extension to October 15). After returning to India, your NRE, NRO, FCNR, PPF, EPF, and Indian brokerage accounts all count. The threshold is aggregate, not per-account — five Indian accounts of $2,500 each trigger the filing.

FATCA (Form 8938)

FATCA is filed with your US tax return (Form 1040). Thresholds for taxpayers living abroad are higher than FBAR — $200,000 on the last day of the year or $300,000 at any point for single filers; double for joint. But FATCA also covers assets FBAR doesn't: foreign mutual funds, foreign pension interests, foreign life insurance with cash value, and foreign trust interests.

When Do These Obligations End?

FBAR and FATCA obligations end when you cease to be a "US person" — meaning you are no longer a US citizen, green card holder, or US tax resident. H1B holders who depart and break US tax residency stop having obligations from the calendar year after departure. Green card holders must formally abandon (Form I-407) and file Form 8854 to end obligations.

The Most Common Traps

• PPF and EPF accounts: Both are reportable on FBAR and FATCA, and PPF is treated as a foreign trust by the IRS — requiring additional Forms 3520 and 3520-A.
• Indian mutual funds: Classified as PFICs (Passive Foreign Investment Companies) with punitive US tax treatment. File Form 8621 for each fund.
• Joint accounts with parents: If you are a signatory on your parents' Indian account, you may need to FBAR-report the entire account balance.
• Sukanya Samriddhi / NSC: Reportable; income taxable in the USA even if exempt in India.

The Streamlined Procedures Safety Net

If you have missed FBAR/FATCA filings, the IRS Streamlined Foreign Offshore Procedures allow you to come into compliance with no penalty (foreign residents) provided your non-compliance was non-wilful. This window is closing for many returnees — file before the IRS contacts you.