I am a US citizen holding OCI card. I am resident in India (FEMA and Tax). I have shifted base back to India 10 years ago. I am employed in India. I continue to retain US Citizenship. - I am a US citizen holding OCI card. I am resident in India (FEMA and Tax). I have shifted base back to India 10 years ago. I am employed in India. I continue to retain US Citizenship. - Ask the Expert - Fee Only Investment Advisers

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I am a US citizen holding OCI card. I am resident in India (FEMA and Tax). I have shifted base back to India 10 years ago. I am employed in India. I continue to retain US Citizenship.

Other additional Information

    1. No assets /Income in USA
    2. All assets/Incomes in India
    • Do I have to pay tax in USA on the Income earned in India?

 

USA taxes its citizens on their Global Income irrespective of their Residential status.

Interest earned on his EPF is exempt in India. Is it taxable in US ?

This interest is likely to be taxable in the US

Are unrealised gains on his Mutual fund holdings in India liable for tax in US due to application of PFIC ?

Yes . Unrealised gains on mutual fund holdings are liable for tax in US due to application of PFIC.

If I sell my existing house in India and buy another for my own residence immediately, the capital gain on sale of the old house is exempt in India. Will I have to pay tax on such capital gains in the US ?

Yes, you may have to pay tax on such capital gains in the US

I am unlikely to ever return to US and am thinking of relinquishing my US Citizenship.

Changing Citizenship has many ramifications and impact on tax is only one (though important) parameter to decide on this issue. This decision needs to be carefully considered.

 “* The intricacies of US tax laws are not an area of expertise. This case study is only meant to bring out the possible ramifications of the PFIC regulations. Please consult a US tax consultant before applying any of these findings.