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Quick answer: a US person who has a financial interest in, or signature authority over, foreign financial accounts must file an FBAR (FinCEN Form 114) if the combined maximum value of all those accounts exceeded $10,000 at any time in the calendar year. Indian NRE, NRO, FCNR(B), RFC and ordinary savings accounts are foreign accounts for this purpose. The report is filed electronically with FinCEN, not with your tax return, and is due on 15 April with an automatic extension to 15 October.
This is general information, not tax or legal advice. FBAR and related US tax rules are technical and mistakes can be costly. Speak to a US CPA, enrolled agent or tax attorney before filing, and especially if you have missed a year. This guide is independent, is about US reporting rules only and has not been reviewed by a US tax professional.
Who has to file
The requirement applies to US persons, which includes US citizens, Green Card holders and other people who are US residents for tax purposes, and certain entities (see the IRS FBAR page and the FinCEN page). This guide is about individuals. For entities, read the official rules.
Whether you are a US person needs a separate assessment. US tax residency rules decide it. Indian citizenship, an NRI bank account, OCI status or physical presence in the US alone should not be used as the complete test. If you are moving back to India, changing your residence or Indian bank account status does not, by itself, settle your US reporting obligations. See the guide to returning to Navi Mumbai for the Indian side.
- It covers accounts where you only have authority. Signature authority alone can trigger the requirement. That means being able to control the movement of funds by direct communication with the bank. Authority limited to trading investments, or purely supervisory authority, does not count.
- Joint accounts. Each US person who co-owns an account reports the entire account value on their own FBAR, with no pro rating. This matters for accounts held jointly with a spouse or with parents in India.
- Minors. A child generally files their own report. If the child cannot, a parent or guardian files and signs for them.
The spouse filing exception
A spouse does not have to file separately only if all three conditions are met:
- Every account the non-filing spouse must report is jointly owned with the filing spouse.
- The filing spouse reports those accounts on a timely, electronically signed FBAR.
- The spouses complete Form 114a and retain it. It is kept and not submitted.
Otherwise, separate filings may be required. Filing a joint income tax return does not by itself create a joint FBAR exception.
Which Indian accounts and assets count
Any account with a foreign financial institution generally counts, whether or not it earns taxable income. The IRS lists bank accounts, brokerage accounts and mutual funds as examples. It does not use India specific labels, so your NRE, NRO, FCNR(B), RFC and ordinary Indian savings accounts and fixed deposits are treated as ordinary foreign bank accounts. For how these accounts differ in India, see the NRE vs NRO guide and the guide to FCNR(B) and NRE fixed deposits.
| Item | Position to discuss with your US adviser |
|---|---|
| Indian bank savings, current and fixed deposit accounts | Reportable foreign accounts under the general rule. Include reportable accounts outside India as well. |
| Brokerage and demat accounts | Reportable as foreign financial accounts in their own right. |
| Indian mutual funds | Foreign mutual funds generally fall within FBAR reporting rules. Do not assume a folio is excluded because it is held directly with the fund company. Ask your US adviser how to identify and report each holding, including avoiding duplicate reporting of assets already represented within a reportable custodial account. |
| PPF, EPF, NPS and similar schemes | The general IRS and FinCEN sources cited here do not resolve the treatment of every Indian retirement or savings scheme. Obtain advice on your specific arrangement. |
| Indian real estate held directly | The property itself is not reported as a foreign financial account. An interest in an entity that holds property can be a separate matter, and a foreign entity interest can be reportable on Form 8938 even when the underlying property is not. Sale or rental proceeds deposited in an Indian bank account need their own account assessment. |
How to apply the $10,000 test
The test adds up the maximum value of each reportable account during the calendar year, after converting to dollars. Use the calendar year, not India’s April to March financial year. A low or zero closing balance does not show that an account stayed below the threshold throughout the year.
A hypothetical example
| Account | Maximum value, already converted to USD |
|---|---|
| NRE savings | $6,000 |
| NRO savings | $3,500 |
| Separate fixed deposit | $2,000 |
| Combined maximum values | $11,500 |
This example assumes separate funds with no transfers between the accounts. The threshold is exceeded even though no single account exceeds $10,000, so all three accounts are reported. The IRS Internal Revenue Manual says money moved between foreign accounts should be counted only once when you work out the aggregate threshold (see the IRM), so do not mechanically add duplicate transferred funds. Reporting each account’s own maximum is a separate step. The example is an illustration and not advice for your accounts.
Maximum value and the exchange rate
- For each account, find the greatest value during the year in the account’s own currency. Quarterly or more frequent statements can be used if they show the peak accurately.
- Convert the rupee amount into dollars using the Treasury reporting rate for the last day of the calendar year, from the Bureau of the Fiscal Service (see the Treasury rates and the FinCEN guidance). The IRS yearly average rate is not the FBAR rate.
- Round up to the next whole dollar. A negative balance is entered as zero.
How and when to file
FBARs are filed electronically through FinCEN’s BSA E-Filing System, and individuals can file without registering through the FBAR e-filing route. The report is not attached to your tax return. The due date is 15 April for the previous calendar year, with an automatic extension to 15 October and no request needed. Professionals filing for clients must register.
Before you file: preparation checklist
- The account holder’s name and account number.
- The institution’s name and address.
- The account type, and ownership or authority details.
- Statements that support the maximum balance.
- The exchange rate source and the calculation.
- Joint owner information where relevant.
- The saved submission acknowledgement and the filed report. Records are generally kept for five years from the due date.
If you missed a year or made a mistake
| Situation | What to consider |
|---|---|
| A required FBAR was never filed | Review the applicable late filing procedure promptly. Filing late does not automatically avoid penalties, and IRS guidance distinguishes ordinary late filing from the compliance options. |
| An FBAR was filed with mistakes | Review the amendment instructions. |
| Foreign income was also omitted | Obtain advice on the appropriate broader compliance route. |
| The IRS has already contacted you | Obtain case specific advice before you choose a procedure. |
FBAR and Form 8938 are different
| FBAR (FinCEN Form 114) | Form 8938 (FATCA) | |
|---|---|---|
| Filed with | FinCEN, electronically | The IRS, attached to your income tax return |
| Threshold | Combined foreign accounts above $10,000 at any time in the year | Higher thresholds that depend on where you live and your filing status |
| Due | 15 April, automatically extended to 15 October | With your return, including extensions |
Filing one does not replace the other, so you may owe one form or both (see the IRS comparison).
Penalties
Civil penalties can apply for failing to file or for filing incorrectly. A non-willful violation can carry a maximum civil penalty, and a willful violation can carry a much higher maximum that may be a percentage of the account balance. Examiners have discretion, and the outcome depends on the facts, so these are maximums and not automatic assessments. The Supreme Court held in Bittner v. United States (2023) that the non-willful penalty is tied to the reporting violation rather than automatically multiplying by the number of accounts.
- The inflation adjusted maximums in the table effective from 17 January 2025 were $16,536 for a non-willful violation and $165,353 for the dollar limit of a willful one. Treat these as historical figures. Check FinCEN for the amount that applies to the assessment date.
- Criminal penalties are possible in serious cases. Their range depends on the offence and the facts.
The IRS says no non-willful penalty is imposed where there was reasonable cause and accurate delinquent reports are filed. Whether a failure was willful is exactly the kind of question for a US tax professional (see the IRS note on FBAR reporting).
Tax on Indian interest is a separate question
The FBAR only reports accounts. It does not calculate tax. US citizens and residents are taxed on their worldwide income, and US returns for people living abroad have their own due dates (see IRS Publication 54). Interest that is exempt in India, such as NRE interest, may be treated differently in the USA, and a foreign tax credit may apply. Indian mutual funds and similar products can also have special US tax rules. Both points need a US adviser. For the Indian side of your tax position, see the NRI income tax return guide. The guide to Form 41 (formerly Form 10F) covers Indian treaty documentation for payments from India. It is separate from this US filing.
Questions to ask a US tax professional
- Are my PPF, EPF, NPS or other Indian schemes FBAR accounts, and do they go on Form 8938?
- How should I report my Indian mutual funds, including folios held directly, without duplicating assets in a custodial account?
- How is my NRE or NRO interest taxed in the USA, and how does the treaty and a foreign tax credit work for me?
- I have missed filing for earlier years. What are my options?
- Which of my joint accounts, accounts with parents in India, or powers of attorney count?
- Which Form 8938 thresholds apply to me given where I live?
Frequently Asked Questions
What is an FBAR?
A report on FinCEN Form 114 that US persons file to disclose foreign financial accounts when their combined maximum value exceeded $10,000 during the year.
Do NRE and NRO accounts need to be reported?
They are foreign bank accounts, so they fall under the general rule. Add up the maximum values of all your foreign accounts to apply the $10,000 test, even if no single account exceeds it.
When is the FBAR due?
On 15 April for the previous year, with an automatic extension to 15 October.
Which exchange rate do I use for rupees?
The Treasury reporting rate for the last day of the calendar year, not the IRS average rate.
Is the FBAR the same as Form 8938?
No. They are filed differently, have different thresholds, and filing one does not replace the other.
Do I need to report my PPF or EPF?
The general IRS and FinCEN sources cited here do not resolve the treatment of every Indian retirement or savings scheme. Obtain advice on your specific arrangement before filing.
Can my spouse and I file one FBAR?
Only if every account the non-filing spouse must report is jointly owned with the filing spouse, the filing spouse files on time with an electronic signature, and both complete and retain Form 114a. Otherwise separate filings may be required.
Sources
| Point | Source |
|---|---|
| Who files, thresholds, due dates | IRS FBAR page and FinCEN |
| Maximum value and conversion | FinCEN and Treasury rates |
| Aggregation and joint accounts | Internal Revenue Manual |
| FBAR vs Form 8938 | IRS comparison |
| Penalties and reporting details | IRS note and IRS Publication 54 |
Reviewed on 2 November 2026. US rules change, so check IRS and FinCEN before filing. This guide has not been reviewed by a US tax professional.
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