US Tax on NRE, NRO Interest Questions & Answers

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File NRE account interest in USA tax return. Exchange rate for USD conversion by IRS. 1099-INT is not given by Indian bank. NRE NRO FD interest is taxable.

The amount from ULIP is taxable in US even if it is non-taxable in India. You should add it to your total US income and then calculate US taxes.

If someone transfers money to your account, then, it depends on the purpose of that money. If it is not a sale transaction or your income in some way, then it is not required to be taxed.
Thanks Anil for update
Question

  1. As Ulip amount is coming to NRO account at the time of maturity ,it is same as someone transfer money to my account then how it is taxable in US ? is that correct understanding ?

  2. If i gain interest on that ulip maturity principle then interest amount is taxable ? is that correct understanding ?

Hi @vishal_pratap

Your understanding is NOT correct.

Your salary is also credited to your account by someone. Does that mean that it can be counted as transfer by a friend?

There are laws in place for some meaning and money movement is tracked.

The Indian bank or ULIP company reports the payouts to Indian government.

It is your choice if you want to declare it in US or not. Legally, you should.

Rest is your choice.

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