I have an Indian savings account to which I send money from the U.S. Over the year the maximum amount I sent was less than $10,000.

I would like to know whether there are any complications if I don't report this account for U.S. tax filling.

Please tell the implications in India and USA.

2 Answers 2


I assume you are filing US taxes because you are a US citizen, resident alien, or other "US person".

If you have a total of $10,000 or more in assets in non-US accounts, you are required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts, also known as FBAR, to report those accounts. See Comparison of Form 8938 and FBAR Requirements. Note this refers to the total balance in the account (combined with any other accounts you may have); the amount you transferred this year is not relevant. Also note that the FBAR is filed separately from your income tax return (it does not go to the IRS), though if you have over $50,000 in offshore assets you may also have to file IRS Form 8938.

Simply reporting those accounts does not necessarily mean you will owe extra taxes. Most US taxes are based on income, not assets.

According to the page linked, the maximum penalty for a "willful" failure to report such accounts is a fine of $100,000 or 50% of the assets in question, whichever is greater, in addition to possible criminal sanctions.

There may be other US filing requirements that I don't know about, so you may want to consult a tax professional. I do not know anything about your filing requirements under Indian law.

  • 2
    Keep in mind - the penalty is per year. I.e.: if you had $10K account which you decided to "forget" about for 10 years - you can get hit with $50K penalty. 5 times the value of the account (10 years * 50%). Things have happened.
    – littleadv
    Apr 29, 2015 at 3:59

Assuming your tax status in India is Non-Resident. The funds are deposited in an NRE account, there is nothing that needs to be done. If you have any income in India, then you would need to file a tax return.

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