Us taxes on demat account

NISHA2009 · Post by **NISHA2009** » Tue Nov 09, 2010 6:54 pm

Can a R2I, USC with OCI, open a Demat account. IF so should he show the income as an earned income while filling taxes in US. Please indicate

capmorgan · Post by **capmorgan** » Tue Nov 09, 2010 7:15 pm

Once you become a Resident of India you can open a Demat account. For the definition of Resident please search thru these forums.

The profit you get from the sale of stocks would be capital gains and should be reported on Schedule D the same way as you would report profits from US stock sales. It is not considered earned income.

NISHA2009 · Post by **NISHA2009** » Wed Nov 10, 2010 10:51 am

Thank you Capmorgan, I am residing in India from past 11 months, so can I consider myself as a resident Indian. I have address proof, since I stay in my own house also I have got my Indian driver's lcence. I will apply for PAN.

I browsed through the forums of resident Indian definition, got a bit confused.
Please respond.

NISHA2009 · Post by **NISHA2009** » Mon Nov 15, 2010 8:45 pm

Thank you so much Capemorgan for. Your time is highly appreciated. Thank you for the detailed info.

I have one more question this time with reference to regarding the FBAR Form.

I am unable to understand that we have to file FBAR form if the aggregating amount in the foreign accounts exceed $10,000.

I had transfered more than $30,000 (US Tax paid money )into my NRE account before I came to India. Then should I file the FBAR form. Please do respond.

Thank you!

gurusw · Post by **gurusw** » Mon Nov 15, 2010 9:26 pm

Yes, if amount exceeds 10000 anytime in the year (even for a single day), you will have to file FABR.

NISHA2009 · Post by **NISHA2009** » Tue Nov 16, 2010 10:44 am

Thank you for the response gurusw.

What should I do now, I have not filed the form.

Is there any way I can file now. Please do respond, how this can be rectified.