GIFT City Funds
US TIN required by Indian banks. The IRS wants Form 8938. FinCEN requests an FBAR Families consider the three requests to be one form. They are not. The foreign account tax compliance act is the US law behind the bank questionnaire and Form 8938. It’s not the FBAR, and it’s not Schedule FA on the Indian return.
This guide tells the purpose, the India-US pipeline, individual thresholds and where Indian advisers really help.
Quick Answer Box
FATCA is a US law. Foreign banks report U.S.-person accounts . US persons are required to report specified foreign financial assets on Form 8938 if they meet dollar thresholds that vary by filing status and whether they live in the United States. India follows a 2015 Model 1 IGA: Indian institutions report to CBDT, not directly to IRS. File 8938 with US return. Separate FBAR filing for foreign accounts over USD 10,000. Wrong cart is buying “Indian FATCA ITR” product.
What Is the Foreign Account Tax Compliance Act?
FATCA was enacted in 2010 and lives mainly in Internal Revenue Code sections 1471 to 1474 (institution rules) and section 6038D (individual specified-asset reporting).
Two engines:
- Foreign Financial Institutions (FFIs) must identify certain US persons and report account information or be subject to a 30 percent withholding tax on certain US-source payments.
- If the values are above published thresholds, specified individuals and certain domestic entities must file Form 8938, Statement of Specified Foreign Financial Assets, with their US income-tax return.
A specified US person includes US citizens, US tax residents and green-card holders, including those who have lived in India for years. Place of birth does not cancel the status.
Purpose of the Foreign Account Tax Compliance Act
“The statutory purpose is tax administration, not travel ban.” Before FATCA, the IRS had limited automatic visibility into bank accounts held outside the U.S. FATCA requires institutions to gather tax-residency information and report account information through governments or in some models directly to the IRS.
It does not tax Indian income per se. For US persons, Indian interest, dividends and capital gains continue to be subject to US worldwide taxation with foreign tax credit mechanics, and subject to Indian tax under Indian law. The matching layer is FATCA.
Foreign Account Tax Compliance Act US Rules for Individuals
Form 8938 is the individual a FATCA filing requirement.
You include specified foreign financial assets: Indian bank and FD accounts, NRE/NRO, many mutual-fund and demat accounts, certain insurance cash values, and specified interests in foreign entities not already within a reported account.
A house, jewellery or personal-use property is not generally classified as a “financial account”, but other US information returns may still apply to companies and trusts.
Thresholds commonly applied (USD, aggregate):
| Status | Lives in the US | Lives abroad (qualifying) |
| Single / married filing separately | > 50,000 year-end or > 75,000 any time | > 200,000 year-end or > 300,000 any time |
| Married filing jointly | > 100,000 year-end or > 150,000 any time | > 400,000 year-end or > 600,000 any time |
“Lives abroad” generally follows bona fide residence or the physical-presence type tests for foreign earned income rules. Refer to the current instructions for IRS Form 8938 for the year you are filing.
Values are converted at the Treasury year-end rate as per the instructions. Joint assets with a non-US parent still often need careful attribution. Filing 8938 does not pay the tax. It shows assets so income on 1040 can be verified.
Penalties for a missing 8938 start at USD 10,000 per year and can escalate after IRS notice. Income excluded, plus accuracy and fraud penalties on top. This article is not a penalty calculator.
FATCA Filing Requirement versus FBAR
| Point | FATCA Form 8938 | FBAR FinCEN 114 |
| Law | FATCA / IRC 6038D | Bank Secrecy Act |
| Where filed | With Form 1040, IRS | BSA e-filing, FinCEN |
| Typical trigger | Higher, residence-sensitive dollar tests | USD 10,000 aggregate foreign accounts at any time |
| Scope | Broader specified assets | Financial accounts, including some signature-authority cases |
| Deadline | Tax-return due date (and extension) | 15 April with automatic extension to 15 October |
Most US persons with ordinary Indian savings clear FBAR long before they clear Form 8938. Filing one does not satisfy the other.
India–US IGA and What Indian Banks Do
On July 9, 2015, India and the United States signed a Model 1 IGA. Indian reporting financial institutions identify US indicia, collect self-certifications (W-9 or equivalent for US persons; W-8BEN-style forms for many non-US persons), and report to the Indian tax authority. CBDT exchanges the file with IRS.
Under the framework of the Income-tax Act, 2025, the reporting institution makes use of a prescribed AEOI form (Form 166 in the current rules pack) rather than a direct IRS upload.
If you opened an NRE account last year the FATCA/CRS tick-box was the bank doing IGA due diligence. That tick-box isn’t your IRS Form 8938.
Non-compliant FFIs outside an IGA framework could face the 30 percent withholding on certain US source withholdable payments. Indian banks in good standing are registered and receive a GIIN from the IRS FATCA registration system.
Table 1: Financial & Technical Data Matrix – Who Files What
| Actor | What they file | To whom |
| US person over 8938 threshold | Form 8938 + 1040 | IRS |
| US person over FBAR threshold | FinCEN 114 | FinCEN |
| Indian bank / MF / insurer (RFI) | IGA / Form 166 data | CBDT, then IRS |
| Non-US person with only Indian accounts | Usually no 8938 | Bank still collects CRS/FATCA self-cert |
| Indian resident with foreign accounts (non-US) | Indian Schedule FA / Black Money rules | Indian ITR, not FATCA |
Indian residents who are not US persons do not file Form 8938. They may still have Indian foreign-asset disclosure. Do not mix those statutes.
Key Compliance Requirements under FATCA
For individuals who are specified US persons:
- Decide if you are a specified person.
- Value specified foreign financial assets at year-end and at peak.
- File Form 8938 if over the threshold.
- Report the related income on the 1040.
- Keep FBAR in view.
- Give the Indian institution a consistent TIN and self-certification.
For Indian FFIs:
- Register and maintain GIIN where required.
- Perform due diligence on new and pre-existing accounts.
- Report US reportable accounts to CBDT on time.
- Withhold only where the regulations actually require it.
For neither:
- A person who is not a US specified person and not an FFI does not “file FATCA from India.” They answer the bank form honestly.
How Can I File FATCA Reports Online from India?
Form 8938: filed with the US return, usually by IRS-accepted software or a CPA, and sent with the 1040. There is no FATCA for Individuals screen in the CBDT e-filing.
FBAR: Filed at the FinCEN BSA e-filing site (available from India).
Institutional filings: RFIs use the India Reporting Portal for Form 166 / AEOI XML and the IRS FATCA registration site for GIIN maintenance.
Anyone selling “FATCA e-file on incometax.gov.in for US citizens” is mixing portals.
Which Firms Provide FATCA Advisory in India?
Look for cross-border practices that already file US 1040s for clients in India:
- India-based CA firms with a US CPA partner or correspondent
- US CPAs who specialise in India-asset 8938/FBAR packs
- Big-four and mid-tier international tax desks
Who signs the US return? Who values Indian mutual funds and unlisted shares? Who talks to the bank when a W-9 conflicts with an old KYC? Schedule FA can be filled by “Indian tax consultant” without US filing capability. That’s another kind of job.
Some past non-filers may be eligible to apply IRS streamlined or other voluntary procedures. These are fact-specific, not a blog checklist.
Risk Analysis: Eleven FATCA Mix-Ups
- Treating the bank FATCA form as Form 8938.
- Filing 8938 and skipping FBAR.
- Using the US-resident threshold while living in India all year.
- Omitting Indian mutual funds because “the AMC already reported.”
- Assuming an NRE account is invisible because it is tax-free in India.
- Giving the bank a W-8BEN while holding a US passport.
- Reporting only year-end balances when the peak test is failed.
- Confusing Schedule FA with 8938.
- Ignoring signature authority on a parent’s account for FBAR.
- Waiting for a refund product instead of a CPA.
- Treating FATCA as a reason to close accounts rather than to report them.
Table 2: Generic Advice vs. Strategic Thinking Matrix
| Decision Point | Generic Advice | Strategic Thinking |
| Bank asked for FATCA | “I filed FATCA” | That was IGA KYC, not Form 8938 |
| Accounts total USD 15,000 | “No US forms” | FBAR may still be due |
| Lives in Bengaluru, US citizen | “Use 50,000 threshold” | Check living-abroad tests first |
| Indian MF reported to CBDT | “IRS already knows, skip 8938” | Institution report does not replace 8938 |
| Not a US person | “Must file FATCA online from India” | Wrong statute; use Indian FA rules if any |
| Past years missed | “Ignore it” | Speak to a US-India practitioner |
Strategic thinking counts two agencies and two thresholds.
Closing Perspective
FATCA is a US reporting statute with an Indian delivery pipe. Banks speak to CBDT. You speak to the IRS on Form 8938 when the dollar tests say so, and to FinCEN on FBAR when accounts cross USD 10,000. The purpose is matching, not a new Indian wealth tax. Close the loop with consistent TINs, honest self-certs and a US return that lists the same Indian assets the bank already sent.
This is general information, not US or Indian tax advice. Thresholds and form years change. Use the IRS instructions and a qualified cross-border adviser.
People Also Ask
What is the Foreign Account Tax Compliance Act?
A US law requiring foreign institutions to report US-person accounts and requiring specified persons to file Form 8938 when foreign financial assets exceed thresholds.
What is the purpose of FATCA?
To give the IRS automatic information on foreign accounts so worldwide income of US persons can be checked.
What is the FATCA filing requirement?
Institutions report under the IGA. Individuals file Form 8938 with the US return if they are specified persons over the dollar tests.
Is FBAR the same as FATCA?
No. FBAR is a FinCEN account report with a USD 10,000 test. FATCA’s individual form is 8938.
How do I file from India?
Form 8938 with the US 1040. FBAR on FinCEN’s site. Indian ITR portals do not replace those filings.
Which Indian firms advise on FATCA?
Cross-border CA/CPA firms that prepare US returns and 8938/FBAR packs, not generic ITR shops.
Do Indian banks report my NRE account?
If you are a documented US person, the IGA pipeline is designed to include reportable accounts.
How can WealthMunshi help?
NRI and Tax Planning Assistance from WealthMunshi. Indian families with US accounts and US reporting requirements can consult the firm’s advisory services and a US-licensed preparer.
The bank already has the TIN. The open question is whether FBAR and Form 8938 filers file that. You can schedule a planning review if you have US passport and Indian Folios.
