Since Indian banks do not issue 1099-INT forms, you must create a substitute or manual 1099-INT in your tax software.
- Gross Interest: Report the total interest earned (before tax was deducted) in Box 1.
- Foreign Tax Paid: Enter the TDS (Tax Deducted at Source) in Box 6 (Foreign tax paid).
- FATCA Box: Yes, check the box indicating you have a financial interest in a foreign financial account (often associated with Form 8938/FATCA).
- Conversion: All amounts must be converted to US Dollars, typically using the yearly average exchange rate or the rate on the date of the transaction.
If the amount of tax reported is $300 or less ($600 if married Filing Jointly), you do not need a Form 1116.
As far as FBAR and 8938 relationship, here are the requirements for filing.
- If the aggregate value of all your foreign accounts exceeds $10,000 at any point, you must report the same account on the FBAR.
- For the 8938:
- Unmarried taxpayers living in the US: The total value of your specified foreign financial assets is more than $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year
- Married taxpayers filing a joint income tax return and living in the US: The total value of your specified foreign financial assets is more than $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year
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