If you are a US tax resident and your Indian bank, deposit and investment accounts together crossed US$10,000 at any point in the calendar year, you must file an FBAR (FinCEN Form 114) by 15 April, with an automatic extension to 15 October. Separately, FATCA's Form 8938 goes with your tax return once your foreign financial assets pass US$50,000 on 31 December or US$75,000 at any time in the year, if you are single and live in the US (double for married filing jointly). NRE and NRO accounts, FDs, Indian mutual funds, demat accounts and life insurance with a cash value are reportable on both. Property you own directly is reportable on neither.
The grey areas are EPF, PPF and NPS, where the IRS has not published anything India-specific. Below is the asset-by-asset table, the thresholds, what goes wrong, and a worked example.
What is the FBAR and who has to file it?
The FBAR is a report to FinCEN, the US Treasury's financial crimes unit, not to the IRS. A US person must file it if they have a financial interest in, or signature authority over, foreign financial accounts whose aggregate value exceeded US$10,000 at any time during the calendar year.
- US person includes citizens, green card holders and anyone who is a US resident under the substantial presence test, which most H-1B and L-1 workers meet in any year they spend 183 days or more in the US.
- Aggregate means you add the highest balance of every account during the year. Five accounts that each peaked at ₹2 lakh add up to more than US$10,000 at current rates, even though none of them came close on its own.
- It does not matter whether the account earns taxable income. A dormant savings account still counts.
- Due date: 15 April of the following year, with an automatic six-month extension to 15 October. You don't need to ask for it.
- How: online through FinCEN's BSA E-Filing System. It is not part of your Form 1040.
- Records: keep account details and the maximum value for five years from the due date.
An account held jointly with a parent in India is reported at its full value on your FBAR, not your share of it. If you only have signature authority over a parent's account (as a joint operator or under a mandate), the FBAR still applies.
What is Form 8938 (FATCA) and what are the thresholds?
Form 8938, the Statement of Specified Foreign Financial Assets, is filed with your income tax return and has the same due date, including extensions. It overlaps with the FBAR but has higher thresholds and covers a few assets that the FBAR doesn't. Filing one does not excuse the other.
| Your situation | Total value on the last day of the year exceeds | Or total value at any time in the year exceeds |
|---|---|---|
| Living in the US, single or married filing separately | US$50,000 | US$75,000 |
| Living in the US, married filing jointly | US$100,000 | US$150,000 |
| Living abroad, single or married filing separately | US$200,000 | US$300,000 |
| Living abroad, married filing jointly | US$400,000 | US$600,000 |
For the FBAR the threshold is US$10,000 aggregate for everyone, whatever the filing status or country.
To convert rupee values, the Form 8938 instructions say to use the US Treasury Bureau of the Fiscal Service exchange rate on the last day of the tax year. FinCEN's FBAR page links to the same Treasury Reporting Rates of Exchange.
Which Indian assets go on FBAR and Form 8938?
The table follows the IRS comparison of Form 8938 and FBAR and the IRS manual on FBARs. Where the IRS has not addressed an Indian product, I say so instead of guessing.
| Indian asset | FBAR | Form 8938 | Basis |
|---|---|---|---|
| NRE or NRO savings account | Yes | Yes | Financial account at a foreign financial institution |
| NRE or NRO FD, FCNR deposit, RD | Yes | Yes | Same: a deposit account at a foreign bank |
| Resident savings account you haven't redesignated | Yes | Yes | Same |
| Indian mutual funds (held in a folio or demat) | Yes | Yes | IRS lists "foreign mutual funds" as reportable on both |
| Demat and broking account with Indian shares | Yes | Yes | The account is reported; the shares inside are not listed separately |
| Indian shares held outside any account (physical certificates) | No | Yes | Foreign stock not in a financial account is 8938 only |
| Life insurance with a cash value (endowment, money-back, ULIP) | Yes | Yes | IRS lists foreign-issued insurance with cash value on both; the cash value is the account value |
| Pure term insurance | No | No | No cash value, so it is not an insurance account on the IRS's definition |
| Property in India you own in your own name | No | No | IRS: foreign real estate held directly is not reported. The NRO account that receives rent is. |
| Gold, jewellery, cash at home | No | No | Precious metals, personal property and currency held directly are not reported |
| PPF | Unclear | Unclear | No IRS guidance on PPF. It sits with a bank or post office, which points towards an account. |
| EPF | Unclear | Unclear | No IRS guidance on EPF. The IRS manual says foreign retirement plans are "normally reportable" on FBAR, and the 8938 instructions include foreign pension plans but exclude foreign social security. EPF has features of both. |
| NPS | Unclear | Unclear | No IRS guidance on NPS. The same pension-plan logic applies. |
On the unclear rows: the cost of reporting an asset you didn't strictly need to is a slightly longer form. The cost of leaving out one you did is a penalty. Many cross-border tax preparers report EPF and PPF for that reason, but that is a choice to make with your preparer, not an IRS rule. Our guides to PPF for NRIs and NPS for NRIs cover how those accounts work while you are abroad.
Indian mutual funds raise a bigger issue than reporting. The US generally treats them as PFICs, with their own tax regime and Form 8621. See our PFIC guide and the PFIC tax calculator. If you file Form 8621 for a fund, the 8938 instructions let you skip listing that fund in detail on Form 8938 and just state how many 8621s you filed.
What are the penalties for not filing FBAR or Form 8938?
FBAR. The statute sets a non-willful penalty of up to US$10,000 per violation, and the IRS manual says non-willful penalties apply per violation, not per account. Willful penalties can reach the greater of US$100,000 or 50% of the account balance, and apply per account. All these amounts are adjusted for inflation every year, so the current figures are higher. Criminal penalties may also apply.
Form 8938. Up to US$10,000 for failing to file, plus up to US$10,000 more for each 30 days you don't file after an IRS notice, to a maximum of US$60,000. Criminal penalties may also apply.
If you have missed past years, talk to a US enrolled agent or CPA who does cross-border work before you file anything late: how a late filing is handled depends on whether the failure was willful. US rules depend on your full situation, including when your US residency started.
Worked example: one H-1B worker's Indian accounts
Illustrative only. Single, living in the US. Rupee values converted at ₹95.0194 per US dollar (FBIL reference rate, 16 October 2026). A real filing would use the Treasury rate for 31 December.
| Account | Highest balance | 31 December balance |
|---|---|---|
| NRE savings | ₹6 lakh (about US$6,300) | ₹3 lakh (about US$3,200) |
| NRO FD | ₹10 lakh (about US$10,500) | ₹10 lakh (about US$10,500) |
| Mutual funds | ₹25 lakh (about US$26,300) | ₹25 lakh (about US$26,300) |
| PPF | ₹12 lakh (about US$12,600) | ₹12 lakh (about US$12,600) |
| EPF | ₹18 lakh (about US$18,900) | ₹18 lakh (about US$18,900) |
- FBAR: the bank and fund accounts alone add up to about US$43,100 at their peaks. That is well over US$10,000, so an FBAR is due whatever you decide about PPF and EPF.
- Form 8938 without PPF and EPF: about US$40,000 at year-end and US$43,100 at most during the year. Both are under the US$50,000 and US$75,000 thresholds, so no Form 8938.
- Form 8938 with PPF and EPF: about US$71,600 at year-end, which is over US$50,000, so Form 8938 is due.
The unclear rows decide whether this person files Form 8938 at all. That is why it is worth settling the EPF and PPF question with a preparer once, writing down the reasoning, and applying it the same way every year.
Checklist for your first FBAR and 8938
- List every Indian account in your name, joint with anyone, or where you can sign: savings, FDs, RDs, demat, mutual fund folios, insurance with cash value, PPF, EPF, NPS.
- For each, note the highest balance in the calendar year (January to December, not April to March) and the 31 December balance.
- Convert using the Treasury rate for 31 December.
- Add the highest balances. Over US$10,000 means an FBAR via BSA E-Filing by 15 April (15 October automatically).
- Check the 8938 thresholds for your filing status and whether you live in the US.
- Decide, with your preparer, how you treat EPF, PPF and NPS, and stay consistent.
- If you hold Indian mutual funds, check the PFIC rules and Form 8621 as well.
- Keep the statements for five years.
Common mistakes
- Using the Indian financial year. FBAR and 8938 follow the calendar year. Your peak balance in February counts towards the year you file in April of the next year.
- Counting only big accounts. The FBAR threshold is the total of all accounts. A forgotten resident savings account with ₹50,000 still goes on the form once you're over US$10,000 in total.
- Reporting your share of a joint account. The FBAR wants the whole account value on your form.
- Assuming NRE means "not taxable, not reportable". NRE interest is tax-free in India for a non-resident. The US taxes residents on worldwide income, and the account is reportable.
- Thinking Form 8938 replaces the FBAR. They are separate filings to separate agencies.
- Forgetting money from parents. If parents moved large sums into your Indian accounts, your peak balances rise. Gifts above US$100,000 also need Form 3520, covered in our guide to money from parents in India.
If you are just moving abroad and want to cut down the number of accounts before the first FBAR, start with the becoming-an-NRI checklist.