Question regarding Closing US bank account

Tax queries 363 views 3 replies

John Doe

doctor

23 Points Posted on 24 June 2022

I am an Indian national and between 2002 and 2004 I worked in USA in L1 Visa, paid taxes and then returned to India after that. I have been living India since then, as a resident Indian, but my bank account in USA is still active.
I intend to close it now and wish to wire transfer the money into my local Indian bank account. The money has been in a normal SB account (checking account) so the interest earned is 0.1% which did not attract any taxes in USA and hence I have not filed US taxes after I stopped earning in the US and returned to India. But for the earnings in India, since 2004 till now, I have been a prompt tax payer as a resident Indian.
Is it better that I disclose the US bank account details in this AY 2022-23 IT (Income tax filing) and then initiate the transfer?
I have not included this US bank details in any of my previous years IT filing.

Replies (3)

CA Raj Doshi

Practising CA

8954 Points Posted on 25 June 2022

You can voluntary disclose in AY 2022-23 return. Also, offer the interest income in your Indian Tax Return and pay taxes on it.

Reporting is required to be on a conservative side. Whether you close the account or not is secondary to your reporting requirements.

JJJ

Need help

695 Points Posted on 25 June 2022

I would suggest wiring the money to a sibling or parent or other close relative in India or abroad. And then wiring it to your account in India by classifying it as a gift.

Since its going to be a one-time activity, this solves all the problems without complicated disclosure and lingering doubts.

It's what I did a few years ago.