FBAR and FATCA for NRIs in the US, reporting Indian accounts

If you live in the United States and still have bank accounts in India, the US government wants to know about them, even if they earn almost nothing and even if you've paid every rupee of Indian tax. Two separate reports do this: the FBAR and Form 8938, often called the FATCA form.

Neither is a tax. Both are disclosures. But the penalties for skipping them can be far larger than the balances involved, which is why they're among the most searched money questions for Indian families in the US.

Key points

• An FBAR (FinCEN Form 114) is due if the combined value of all your foreign accounts was more than $10,000 at any time in the calendar year.
• It covers NRE, NRO and savings accounts, fixed deposits, Indian mutual funds and cash-value insurance. Joint accounts with parents count.
• It's filed online with FinCEN, not with your tax return. Due 15 April, with an automatic extension to 15 October.
• Form 8938 goes with your tax return and has higher limits: from $50,000 at year end for a single filer living in the US.
• The IRS removed its penalty-relief page for late FBARs on 1 July 2026. Late filers should file as soon as they can.

Who has to file

The rules apply to US persons: citizens, green card holders, and people who count as US residents for tax under the substantial presence test. In practice that includes most H-1B and L-1 workers after their first year, and many F-1 students after five calendar years in the US.

It doesn't matter that you're an Indian citizen, or that the money came from your salary in India before you moved. If you're a US person and your foreign accounts together crossed $10,000 at any point in the year, you file.

Why it matters: India is home to more of these accounts than almost any other country, because Indian Americans tend to keep NRE deposits, an old salary account, a PPF, insurance policies and joint accounts with parents. A few modest accounts can add up to well over $10,000. For readers in India, it's useful to know why relatives in the US ask banks for statements in dollars every spring.

What counts toward the $10,000

Add up the highest balance of each account during the year, converted to dollars, and see whether the total passed $10,000. The IRS says to use the Treasury's year-end exchange rate for the conversion.

Accounts Indian families usually need to include:

• NRE, NRO and FCNR accounts, and any resident savings account you never closed.
• Fixed deposits and recurring deposits.
• Joint accounts with parents or siblings, even if you never use the money. Signature authority alone is enough.
• Demat and broking accounts, and Indian mutual fund holdings.
• Life insurance or annuity policies with a cash value, such as endowment and money-back plans.
• Many advisers also include PPF and EPF balances; ask your preparer how to treat them.

A simple worked example: you hold an NRE fixed deposit of ₹6 lakh, an NRO account whose peak balance was ₹2 lakh, and a joint account with your mother that peaked at ₹1.5 lakh. At about ₹95 to the dollar, that's roughly $6,300, $2,100 and $1,600, or about $10,000 in total. A small rise in any of them, or a weaker rupee, tips you over the line. Because the test is "at any time", one large transfer that sits for a week can trigger it too.

FBAR vs Form 8938

Many people file both, reporting the same accounts twice. That's normal: one doesn't replace the other.

Deadlines

The FBAR for calendar year 2026 is due on 15 April 2027. You don't need to ask for an extension; everyone gets one automatically to 15 October 2027.

You'll need, for each account: the bank's name and address, the account number, the account type and the maximum value during the year. The IRS says to keep these records for five years. Ask your Indian bank for a statement for January to December, not India's April to March year.

What happens if you've missed it

Penalties depend on whether the failure was non-willful (an honest mistake) or willful. Non-willful penalties run into thousands of dollars per violation, adjusted for inflation every year; willful ones can reach half of the account balance. In 2023 the US Supreme Court ruled in Bittner v. United States that the non-willful penalty applies per report, not per account, which limited the worst cases.

Until mid-2026, the IRS ran Delinquent FBAR Submission Procedures, which said it wouldn't penalise a late FBAR if you'd reported all the income and paid the tax. On 1 July 2026 the IRS removed that page without an announcement. Its FBAR page now says filing late "is a violation" and may bring penalties, and that people who haven't been contacted by the IRS should file late reports as soon as possible.

If you've missed years, talk to a US tax professional before you file. There are other formal routes for people who didn't report income, and which one fits depends on your facts.

The PFIC trap with Indian mutual funds

Reporting is one issue. Tax is another. Most Indian mutual funds count as Passive Foreign Investment Companies (PFICs) under US law. Gains on them can be taxed harshly, with an interest charge, and each fund may need Form 8621 every year. Many Indian Americans hold SIPs set up before they moved, without knowing this. It's worth a review with a preparer who knows PFIC rules before you buy more.

Interest on NRE and FCNR deposits is tax-free in India, but it's taxable in the US for a US resident. Credit for Indian tax paid is available under the India–US tax treaty, which we explain in our guide to avoiding double tax.

A yearly checklist

1. List every Indian account, deposit, policy and demat account, including joint ones.
2. Note the highest balance of each between 1 January and 31 December.
3. Convert using the Treasury's year-end rate and add them up.
4. Over $10,000: file the FBAR on FinCEN's BSA E-Filing site.
5. Check Form 8938 limits for your filing status.
6. Report the interest, dividends and gains on your US return, and claim credit for Indian tax.

Our guide to NRE, NRO and FCNR accounts explains which account is which, and our NRI tax explainer covers the Indian side.

The FBAR asks for little more than a list. The cost of leaving it out is what makes it serious. A half-hour each January with last year's statements is usually all it takes.

Last checked: 26 Oct 2026. This explainer is general information, not tax or legal advice. Check with a qualified US tax professional for your situation.