Tax Attorney Austin Advising NRIs on U.S./Home-Country Tax and Compliance

For Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) residing in the United States, navigating taxes across both the U.S. and India can be complex and stressful. With high-value investments, property assets, and dual income sources, it is crucial to have a trusted tax attorney Austin who understands cross-border taxation and compliance challenges. At LawCrust Legal Consulting, we provide customised, expert legal solutions for NRIs and OCIs dealing with international tax matters.

Why NRIs Need a Specialised Tax Attorney Austin

Managing taxes in two countries requires legal precision and strategic planning. A tax lawyer Austin plays a critical role in helping NRIs:

Understand tax residency status in India and the U.S.
File U.S. federal returns and Indian Income Tax Returns
Navigate the Double Taxation Avoidance Agreement (DTAA)
Maintain compliance with IRS and Indian tax authorities
Minimise tax liability through lawful tax strategies

From global income disclosures to planning for property sales, your financial future depends on the right legal counsel.

1. Dual Tax Landscape: U.S. and Indian Compliance

U.S. Tax Obligations for NRIs

As per the Internal Revenue Code (IRC), U.S. tax residents—Green Card holders or those qualifying under the Substantial Presence Test—must report worldwide income. A skilled tax attorney Austin assists with:

FATCA Compliance: Filing Form 8938 for foreign assets
FBAR Filing: FinCEN Form 114 for offshore accounts exceeding $10,000
PFIC Rules: Reporting mutual funds in India using Form 8621
Tax Treaty Applications: Claiming DTAA relief using W-8BEN or Form 8233
IRC Sections 6038D & 6677: Avoiding penalties through accurate reporting

Recent developments such as inflation adjustments to tax brackets and IRS enforcement against foreign asset hiding have increased the importance of compliance.

2. Indian Tax Responsibilities for NRIs

In India, an NRI’s tax liability depends on their residential status as defined under Section 6 of the Indian Income Tax Act. As per amendments in the Finance Act 2021 and Income Tax Bill 2025, new provisions apply:

If income from Indian sources exceeds ₹15 lakh and the stay in India is over 120 days, the person may be deemed as Resident but Not Ordinarily Resident (RNOR)
RNORs are only taxed on income earned or received in India
The Union Budget 2025 updated tax rebate under Section 87A and allowed exemption for two self-occupied properties

For NRIs owning Indian property, a property tax lawyer Austin can guide you on:

Capital gains taxation (20% for long-term with indexation)
TDS under Section 195 on property sale
Tax-saving options under Sections 54, 54F, and 54EC
FEMA rules on ownership, repatriation, and inheritance

3. Recent Legal Updates and Provisions

Indian Laws: Budget 2025 introduced ₹12 lakh tax-free slab (new regime), no TCS on LRS for education, and increased family remittance limits
U.S. Laws: FATCA enforcement and expanded IRS scrutiny for foreign income, especially from high-risk accounts

These developments make it vital for NRIs to consult a tax lawyer Austin who can ensure full compliance and effective financial planning.

Common Cross-Border Challenges for NRIs

Unclear tax residency status
Misreporting foreign bank accounts
Confusion around capital gains and inheritance tax
Delays in filing FATCA/FBAR
Facing IRS or Indian tax scrutiny without legal representation

Having an experienced tax attorney Austin ensures that these risks are proactively addressed.

FAQs for NRIs and OCIs

1. Do NRIs have to pay taxes in both India and the U.S.?

Yes. If you have income in both countries, taxes must be filed in each. The DTAA allows you to claim credit to avoid double taxation.

2. What happens if I fail to file FBAR or FATCA forms?

Penalties can be harsh. Non-wilful violation: $10,000. Wilful violation: Over $100,000. A tax lawyer Austin can help you rectify and avoid penalties.

3. Can I repatriate sale proceeds from my Indian property?

Yes. Under FEMA, up to $1 million annually through authorised channels, provided taxes are paid.

4. Is capital gains from Indian stocks taxable in both countries?

Yes. India taxes them (10% after ₹1 lakh), and the U.S. may too. Claim DTAA relief to avoid dual taxation.

5. Are gifts received from parents in India taxable in the U.S.?

If they exceed $100,000, you must report using IRS Form 3520. Usually, it’s not taxable but must be disclose

Outlook

In today’s global economy, NRIs and OCIs must adopt a well-informed and legally sound approach to tax compliance. As laws evolve, proactive legal planning becomes more essential than ever. Whether you own assets in India, have investments across borders, or are simply unsure of your tax duties, a qualified tax attorney Austin can offer the clarity, compliance, and control you need.

Conclusion

In summary, NRIs and OCIs face dual taxation risks, evolving legal frameworks, and severe penalties if compliance is neglected. Whether you’re dealing with foreign asset reporting, Indian property taxation, or seeking DTAA benefits, working with an experienced tax attorney Austin ensures that you’re protected and optimised for long-term financial growth.

About LawCrust Consultancy Legal Services.

LawCrust Legal Consulting, a subsidiary of LawCrust Global Consulting Ltd., is a trusted legal partner for NRIs and Indians across the globe. Backed by a team of over 70 expert lawyers and more than 25 empanelled law firms, we offer a wide range of legal services both in India and internationally. Our expertise spans across legal finance, litigation management, matrimonial disputes, property matters, estate planning, heirship certificates, RERA, and builder-related legal issues.

In addition to personal legal matters, LawCrust also provides expert support in complex corporate areas such as foreign direct investment (FDI), foreign institutional investment (FII), mergers & acquisitions, and fundraising. We also assist clients with OCI and immigration matters, startup solutions, and hybrid consulting solutions. Consistently ranked among the top legal consulting firms in India, LawCrust proudly delivers customised legal solutions across the UK, USA, Canada, Europe, Australia, APAC, and EMEA, offering culturally informed and cross-border expertise to meet the unique needs of the global Indian community.

Tax Attorney Austin: Your NRI Guide to U.S. & Indian Tax Compliance