CHICAGO: A group of Indian American professionals and businessmen gathered at Saffron India Restaurant in Westmont to hear a front ranking Indian tax consultant Rajesh Dhruva elaborating on the tax implications of recent treaty between the Indian and the US governments over disclosure of overseas financial holdings by non-resident Indians and its practical implications.
The meet was organized among others by Dr Dasgupta and it was attended by close to 50 interested people who wanted to get enlightened about the tax incidence, if any. Under the treaty, Indian banks ,Mutual funds and others are obligated to report the accounts of US citizens, Green Card holders and H1 visa holders to the IRS, which was not the case the past. It is necessary for all US NRIs to voluntarily declare Indian income and Indian financial accounts to the IRS under Streamlined Procedures of the IRS.
Failing to do to so, Under Streamlined Procedures one will have to pay a penalty 5% of financial assets and revise tax returns for 3 years and FBAR returns for 6 years, for all undisclosed income or gains.
Rajesh H Dhruva, eminent chartered accountant of India, has been on a short visit to USA visiting places like Houston, New Jersey among others to explain the rules of Streamlined Procedures and its practical implications for those affected in India, or here, on the subject.
Dhruva was in Chicago last week and he explained in detail the tax implications under the revised Streamlined Procedures and FBAR returns. All those present felt that the talk by Dhruva was very enlightening and they understood better their position with regard to filing tax returns here and for some, back in India.
The Question Answer season that followed the talk also highlighted various concerns and likely problems that the NRIs could face now and in the near future under different situations.
Ramesh Soparawala
India Post News Service
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