Mutual fund investments in India to be reported in USA. What's the limit of amount to be reported?

Question

While filing tax return in USA, the income earned in India, which months to be considered? After December will the gains earned in India be considered for next FY income? Means from December to March gains will be for next FY and to be mentioned in USA return? If there are investments in mutual funds in India, then what's the limit of amount above which amount should be mentioned in USA tax return filing?

Also, if a person is a joint holder( US resident)others are residents of India,mode of holding being any one or survivor in multiple mutual funds and first holder( US resident) in few where other holders are Indian residents whose mode of holding is any one or survivor, then can I mention only those investment amounts where I am a first holder in the return filed in USA?

As the mode of holding is any one or survivor ,then if all the gains are considered for Indian residents in India while filing tax, then also is it must to mention this holding in USA tax return?

Also how much amount in Indian currency can be considered as tax free gift for a USA resident?

Answer 1

US tax residents have to declare their world-wide income on their US income tax return; there is no minimum below which the income need not be declared; all income is required to be declared.

The existence of foreign assets, regardless of whether they generated any income or not, must also be declared, on Schedule B of Form 1040 that is sent to the IRS, and separately to the US Treasury as per FBAR regulations. It is with respect to the declaration of existence of foreign assets that there is a de minimis rule: if the total value of the foreign assets did not exceed US$10,000 at any time of the year, then the taxpayer is instructed to answer NO to the question about foreign assets on Schedule B, and is not required to report it to the US Treasury either.

Note that "year" generally means January 1 through December 31 for US taxpayers. So, income received during the calendar year is declared on the tax return for that year. If you claim a foreign tax credit for taxes paid to the Indian Income Tax authority, you can claim all taxes actually paid or withheld (TDS) during 2017 on the 2017 tax return. But you must then include as income for 2017 on your US tax return any Indian tax refunds that you received during 2017. This is similar to the state and local income tax deduction on US taxes; deduct what you actually paid (or was withheld) during 2017 on your 2017 return (including 2016 4th quarter estimated tax payment, and any final payment for prior-year taxes made in 2017), but include state or local income tax refunds received in 2017 as income for 2017.

With regard to multiple owners of "any or survivors" accounts, note that NRIs and PIOs are not entitled to have ordinary joint savings accounts or mutual fund accounts with residents of India.