Tax implications on money transfers from India to the US

Question

I am a NRI holding US Citizenship. I would like to repatriate INR (India) to USD from my NRO account from the proceeds of a property sale. I have paid all the taxes for the capital gains in India. I will be transferring the balance after taxes from my Indian bank using the standard repatriation procedures in India (filling forms 15CA and 15CB). My question is w.r.t taxes in the US. Should I pay tax in the US for the repatriated amount? Is that treated as Income from a foreign asset (capital gains) in the US? What is the tax rate? What IRS forms should I fill in the US? Thanks

DJClayworth · Accepted Answer

You need to declare your income, not the amount you move to the US.
So if you had capital gains on property in India, or any other income, you need to declare that on your US tax return. It makes no difference how much - if any - of that money you move from India to US.
Note that this doesn't necessarily mean you will be taxed twice. India and US have a Double Taxation Avoidance Agreement. But you must declare all of your income as instructed. Not doing so is tax fraud.

Tax implications on money transfers from India to the US

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