Why FBAR and FATCA Matter
If you're a US person (citizen, green card holder, or resident alien) with financial accounts in India, you may be required to report them to the US government — even if you owe no additional tax. Failing to file can result in penalties starting at $10,000 per violation for FBAR and up to $50,000 for FATCA.
These are reporting requirements, not taxes. But they're taken very seriously by US authorities.
FBAR (FinCEN 114)
What It Is
The Foreign Bank Account Report is filed with FinCEN (Financial Crimes Enforcement Network). It requires US persons to report foreign financial accounts if the aggregate value of all foreign accounts exceeds $10,000 at any point during the calendar year.
Key Details
| Detail | FBAR |
|---|---|
| Threshold | $10,000 aggregate (all accounts combined) |
| Who files | US citizens, green card holders, resident aliens |
| What's reported | Bank accounts, FDs, NRE/NRO accounts, demat accounts, PPF, insurance with cash value |
| Filing deadline | April 15 (auto-extended to October 15) |
| Where to file | FinCEN BSA E-Filing (online only) |
| Penalty (non-willful) | Up to $10,000 per violation |
| Penalty (willful) | Up to $100,000 or 50% of account balance |
The $10,000 Threshold
This is an aggregate threshold across ALL foreign accounts. If you have:
- NRE savings: ₹3 lakh (~$3,500)
- NRE FD: ₹5 lakh (~$6,000)
- NRO savings: ₹2 lakh (~$2,400)
Your aggregate is ~$11,900 — you must file FBAR even though no single account exceeds $10,000.
The threshold is based on the highest balance at any point during the year, not the year-end balance. If your NRE FD matured and briefly had ₹15 lakh before you reinvested, that peak counts.
FATCA (Form 8938)
What It Is
The Foreign Account Tax Compliance Act requires reporting of specified foreign financial assets on your US tax return (IRS Form 8938). It has higher thresholds than FBAR but covers a broader range of assets.
Thresholds
| Filing Status | Living in US | Living Abroad |
|---|---|---|
| Single | $50K (year-end) or $75K (any time) | $200K (year-end) or $300K (any time) |
| Married filing jointly | $100K (year-end) or $150K (any time) | $400K (year-end) or $600K (any time) |
What's Covered (Beyond Bank Accounts)
- Bank accounts (NRE, NRO, savings, FDs)
- Indian mutual funds and stocks held outside a US brokerage
- Interest in Indian partnership firms or LLPs
- Indian life insurance policies with cash value
- Any other financial instrument issued by a non-US entity
Key Differences from FBAR
| Feature | FBAR | FATCA |
|---|---|---|
| Threshold | $10,000 | $50K–$600K (varies) |
| Filed with | FinCEN | IRS (with tax return) |
| Covers | Financial accounts | Financial accounts + assets |
| Deadline | April 15 (ext. to Oct 15) | With tax return |
| Penalty | $10,000+ | $10,000+ |
You may need to file both. They're separate requirements with different thresholds and agencies.
Common NRI Scenarios
"I just have a small NRE savings account"
If the balance never exceeded $10,000 equivalent (roughly ₹8.5 lakh) during the year, and you have no other foreign accounts, you likely don't need to file FBAR. FATCA thresholds are even higher.
"I have NRE FDs and an NRO account for rental income"
Add up the peak balances of ALL accounts during the year. If the total exceeds $10,000, file FBAR. Check FATCA thresholds based on your filing status.
"I have Indian mutual funds"
Indian mutual funds are reportable under FATCA (Form 8938) but not under FBAR (which only covers accounts). However, they may trigger other reporting requirements (Form 3520 for certain trusts, PFIC reporting under Form 8621).
"My spouse has accounts in India too"
For FBAR: If you have signature authority or financial interest in your spouse's accounts, you may need to report them. For FATCA: Married filing jointly doubles the thresholds.
How to File
FBAR
- Go to the BSA E-Filing System
- Select "File FinCEN Report 114"
- Enter each foreign account with bank name, account number, max value during year
- Submit electronically (no paper filing allowed)
FATCA
- Complete IRS Form 8938
- Attach to your annual tax return (Form 1040)
- Include account details, maximum values, and income earned
Use Our Free Checker
Not sure if you need to file? Use our FBAR/FATCA Filing Checker to enter your accounts and get an instant assessment. If you're logged in, you can save your accounts and track filing status year over year.
Related Resources
- NRE vs NRO Account Guide — understand which accounts you need
- FBAR/FATCA Calculator — check your filing requirements
- NRE vs NRO Calculator — compare after-tax returns