NRI

Green Card: with FATCA in place, it may no longer be a valuable Asset

Green Card with FATCA in place it may no longer be a valuable Asset pardesi news 1459247750

With FATCA in place, the Green Card would no longer remain a valuable asset for the NRIs.

With FATCA (US Foreign Account Tax Compliance Act) in place, the every so precious Green Card would no longer be of any value for the NRIs. With the new pact between India and the US, both the countries are going to freely exchange the financial information of their citizens (precisely by birth). This means no asset would remain concealed anymore and also means the US tax officials would be imposing punitive taxes over the undisclosed liquid money and properties in India.

The FATCA provisions states - FATCA targets tax non-compliance by the US taxpayers with foreign accounts, also FATCA focuses on reporting, by the US taxpayers about certain foreign financial accounts and offshore assets and by the foreign financial institutions about financial accounts held by US taxpayers.

Under FATCA, the information that is to be exchanged is on bank account details, real estate and other valuable assets. Hiding the details on belongings might also lead to jail under FATCA rule. Until now, Indo-Americans hardly disclosed their India property but now the face changes with this new rule in place.

According to a US licensed Chartered Accountant, people have 3 options and they are, “They can declare the assets and if they've missed the deadline for this pay penalties. They can also restructure their holdings and the third option is to take up Indian citizenship and renounce the American one." 

Importantly, India and the US signed the FATCA agreement in July 2015, during PM Modi’s visit to the country. It was agreed that from now, the Indian financial institutions would have to reveal information about the US tax payers to the revenue department, which would be passed on to the US tax authorities.

About the author

Patrick Callahan

Pardesi News Reporter

Pardesi News Reporter

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