1 article tagged Pfic.
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.