US Tax on NRO interest income. I am aware NRE interest income is taxed as Global Income.

[deepanshu-bhatia]

I am Indian Citizen and on L1 Visa, residing in US since mid 2014. I have a NRO bank accounts in India. The NRO account had my savings and deposits based on my Indian income from Rental & Salary while i was in India. In 2015, i have earned interests on those and has been taxed 30% (Tax deducted  at source as per Income tax department) in India.    Do i need to do anything in my tax return in US? Have heard mixed comments from different forums on internet but not sure if interest income from NRO which is already taxed in India is taxable in US as well?

[abhinav0115]

Yes, you need to add this income and offer it in your US tax return. You can claim a tax credit of the 30.90% TDS that your bank has deducted back in India. Do not miss offering this income in your US tax return. 

Also note following points:

• Check if you are liable to do FBAR and Form 8938 reporting if your foreign assets are above the specified thresholds. 
  
• Make a FATCA declaration and inform your US person status to bank in India
  

Thanks!

[G237]

Hello there, thanks for the discussion. I had a related but slightly different question. I have fixed deposits and savings in NRO account in India. My income in India is very less and as a result I do not file my taxes in India, but I declare and file taxes on all my global income in the US. 

In this regard, I wanted to find out how I can elect not to have my taxes deducted at source for my fixed deposit interest in the NRO account. Can I submit a IT form to elect not to have my taxes deducted?

Please help.

Thanks