Housing

Those on H1B, have you bought a house in India?

Jan 7

- How did you fund the property? Did you register it in your name? Did you set up an NRE/NRO account in India? Did you create a General power of attorney? And finally, did you declare this account and property to IRS during tax filing?

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  • Amazon / EngfHUg57
    Legal requirements
    1. You are required to set up NRE/NRO account within 183 days after you leave India if you want to transfer money to your accounts
    2. You can create a GPA
    3. You are required to report the foreign accounts worth over 10k to IRS
    Jan 75
    • Axtria DesiLaunda
      Regarding your point 3, do you mean I will have to show my US accounts? I don't want my family in India to know how much I have in my US accounts.
      Jan 7
    • Microsoft / Engbaahubalee
      IRS is in US and you need to declare your foreign (aka Indian) bank account
      Jan 7
    • Uber CashIn
      NRE account creation is not mandatory. U can transfer money to ur no NRE account just fine
      Jan 7
    • Microsoft / Engbaahubalee
      Legally you can't keep savings account when you are nri, so you need to convert your savings account into NRO account.
      NRE account makes the money repatriable with no forms to fill or CA involvement.
      Jan 7
    • Oracle Pearman
      Yes legally you can’t keep a non NRE account if you reside abroad ..
      Jan 7
  • Oracle Pearman
    Yes , use NRE account for disbursements of payments , have a power of attorney .. and yes declare the NRE account in IRS returns ... need to file the FBAR tax return every year if at any point in time the account had more than $10k
    Jan 70
  • Wells Fargo hsLy13
    Simple...
    Transfer all money to domestic account (may be one of 2 accounts) and register the house in the name of power of attorney that u are planning (your parents)
    Don’t worry about tax. You won’t get caught in India even if you declare.
    I have seen many did the same way..
    Jan 74
    • Epic / Eng
      Guardian

      EpicEng

      PRE
      Intel
      Guardianmore
      You should not register the house on your parents name. From US gift tax laws perspective, you can only give up to 16k or so every year as gift to someone (even your parents). If you register on your parents' name and give more than this limit, then you have to make sure that you deduct the extra amount from your life time inheritance limit. Otherwise, you will incur hefty gift tax.
      Jan 7
    • Amazon / EngfHUg57
      Wells Fargo... You are shamelessly boasting how you evaded tax laws both in India and US. Why don't frauds like you just......
      Jan 7
    • OP
      Epic — can you point to a link about the hefty gift tax issue??
      Jan 8
    • Epic / Eng
      Guardian

      EpicEng

      PRE
      Intel
      Guardianmore
      Just one of the first few links found in Google. Basically we have to reduce any excess amount from lifetime exemption and file along with taxes to IRS. Otherwise, the gift tax of 18-40% could be applicable.

      https://www.thebalance.com/gift-tax-exclusion-annual-exclusion-vs-lifetime-exemption-3505656
      Jan 8
  • Twitter
    Brahmann

    Twitter

    PRE
    Adobe
    Brahmannmore
    I didn't had NRE/NRO account when I bought the house. I transferred money directly using Xoom & remitly to builders account. I got my NRE account afterwards and pay EMI using it. I got GPO in my friend's name who executed everything.
    Jan 71
    • Amazon / EngfHUg57
      Bad advice. It is RBIs mandatory requirement that one shouldn't have a regular savings account 6 months after one leaves the country.

      Clearly compliance isn't our forte but giving a wrong advice is even worse.
      Jan 7
  • Amazon / Eng
    KingCobra

    AmazonEng

    PRE
    NetApp, Nokia
    BIO
    Sr QAE
    KingCobramore
    On L1B, and "yes" to all your questions.
    Jan 70

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