Fatca
3 articles tagged Fatca.
NRI USA 2026: The Complete Cross-Border Money Playbook for 5 Million Indians
Five million Indians live in the United States — the single largest NRI corridor and the most regulated. Every dollar you earn touches three tax authorities (IRS, your US state, India) and two compliance regimes (FATCA + Indian Section 195). The 2026 master playbook: where to bank, how to invest around the PFIC trap, which states tax NRE interest, how 401(k) + IRA coordinate with Indian return planning, and the eight decisions that account for 90% of cross-border money waste.
Best Mutual Funds for US-NRI India 2026: FATCA-Eligible AMCs + PFIC Workarounds
US-resident NRIs face two hurdles before they even pick a fund — FATCA (which AMCs accept US-person subscriptions) and PFIC (the punitive US tax regime on whatever they hold). The 2026 honest list of FATCA-eligible Indian AMCs, the PFIC layer that still applies on top, when US-domiciled India ETFs or ADRs are the cleaner answer, and the GIFT City / IFSC route that is slowly opening up.
PFIC Tax Trap for US-NRI Indian Mutual Funds 2026: Form 8621, QEF, Real Workarounds
Every Indian mutual fund a US-resident NRI holds is a Passive Foreign Investment Company (PFIC) under US tax law. Default tax treatment is punitive — top marginal rate plus interest. Form 8621 every year per fund per holder. CPAs charge ₹40,000–₹1.25 lakh per fund per year to file. The 2026 plain-English explainer on what PFIC is, why most US-NRIs accidentally trigger it, the three election choices, the FATCA-restricted AMC list, and the four real workarounds.