US TAX reporting of Joint Accounts in India??

veees · Post by **veees** » Wed Feb 16, 2011 7:27 am

I am trying to figure out what happens if a person based in US has a joint account in India with a person based in India, with the Indian person (My Dad) being the primary accountholder on the accounts and FDs/CDs. The US person still has to report it using FBAR ( Form TDF 90-22.1 - Report Of Foreign Bank & Financial Accounts) but what about the interest earned on that account? Does the US person still have to report it here in US taxes and claim deduction later? Or interests from the joint account doesn?t need to be reported in the US person tax since the person in India is paying tax on the earned interest when filing his tax returns in India.
Thanks

kkassociate · Post by **kkassociate** » Tue Feb 22, 2011 4:05 pm

Hi Vees,

These accounts are been report while filing the TDF forms. Also 50 % of the interest income on such accounts should be reported on your US tax return and tax credit should be claimed for the same.

We provide assistance with USA and India tax filings from Pune. You can email us on [email][email protected][/email] or visit us at www.kkassociate.com for more details.

Regards,
KKA

raj779 · Post by **raj779** » Wed Mar 09, 2011 3:37 am

Hi kkassociate,

I am a US citizen with OCI, if my parents put my nomination on their bank accounts, assets and on their will then do I need to show the nominated bank account or asset information on US Form TDF 90-22.1 FBAR form or on US Tax returns.

Thanks!

manchhe · Post by **manchhe** » Wed May 11, 2011 11:15 pm

Hi KKAssociate,

Need some help understanding how the base asset value is determined for OVDI penalty.
If someone (US person) had a joint account in india with his father (non US person), Just a joint account with no primary/secondary designation. Is his share of the balance considered 50% of the total account balance or 100% ?

kkassociate · Post by **kkassociate** » Thu May 12, 2011 5:21 pm

Hi mancche,

Was the account in question been used by you to transfer the funds from US to India regularly, even if you are not the primary holder or are just a nominee to the account, but you have been regularly transfering funds to this account and this accounts consists only your transfer transactions than this account may be required to report in the FBAR reports along with the other accounts which you hold outside USA.

Please email the complete details of your query to [email][email protected][/email] or visit us at www.kkassociate.com

Regards,
KKA

greyfri · Post by **greyfri** » Fri May 13, 2011 9:07 pm

I am a US citizen with OCI, if my parents put my nomination on their bank accounts, assets and on their will then do I need to show the nominated bank account or asset information on US Form TDF 90-22.1 FBAR form or on US Tax returns.

No. You do not.

Some term clarification: A 'nomination' in Indian terms is not the same as a 'nomination' in American legal terms. An Indian nominee is just the heir/beneficiary of an account. [The way the term is used in America, it means someone who has legal authority on that account]

If parents give you power of attorney on account, then you do have to show those accounts.

socrates · Post by **socrates** » Mon Aug 22, 2011 7:19 am

manchhe;388040Hi KKAssociate,

Need some help understanding how the base asset value is determined for OVDI penalty.
If someone (US person) had a joint account in india with his father (non US person), Just a joint account with no primary/secondary designation. Is his share of the balance considered 50% of the total account balance or 100% ?

manchhe,

Did you ever get an answer on this? Just curious because I have the same question. Thanks.