Tax Lawyer San Jose: Assisting Indian NRIs With U.S. and Cross-Border Tax Filing and Planning

For Non-Resident Indians (NRIs) living in San Jose, California, managing financial affairs requires navigating complex U.S. and Indian tax laws. The overlap of these two systems often causes confusion, risks of double taxation, and missed opportunities for optimising taxes. A specialised tax lawyer San Jose offers essential guidance for international tax filing and strategic planning, helping NRIs and high-net-worth individuals (HNIs) stay compliant while maximising financial efficiency.

Navigating the Dual Tax System for NRIs with a Tax Lawyer San Jose

U.S. citizens and Green Card holders must pay taxes on worldwide income, regardless of residence. For Indian-origin NRIs, this obligation coexists with Indian tax liabilities on income earned or accrued in India. Navigating these dual obligations requires expertise in both countries’ tax laws.

Key U.S. Tax Considerations for NRIs

Worldwide Income Taxation: The U.S. taxes income from all sources, including Indian assets and investments.
FATCA Compliance: U.S. persons must report foreign financial accounts and assets to the IRS to avoid penalties.
FBAR Filing: If foreign financial accounts aggregate more than $10,000, you must file FinCEN Form 114.
Estate and Gift Tax: U.S. laws may apply to wealth transfers, impacting inherited Indian assets or gifts.
State Taxes: California imposes its own income tax, adding complexity.

Indian Tax Considerations for NRIs

Tax Residency: Your status as NRI, RNOR, or Resident determines Indian tax liability. Maintaining NRI status limits taxation to Indian-sourced income.
Indian-Sourced Income: NRIs are taxed on income from Indian property, capital gains, NRO account interest, salaries from India, and business income from Indian establishments.
TDS (Tax Deducted at Source): Many Indian incomes, like property sales and rental income, have TDS provisions.
Capital Gains: Indian property and investment sales incur capital gains tax with variable rates and possible exemptions if reinvested.

1. The Power of a Tax Lawyer San Jose in Cross-Border Tax Planning

An expert tax lawyer San Jose helps mitigate double taxation and optimise your financial structure by:

Utilising the India-U.S. Double Taxation Avoidance Agreement (DTAA) to claim tax credits, apply reduced rates on income types, and determine tax residency using tie-breaker rules.
Advising on tax-efficient investment structures such as NRE and FCNR accounts.
Guiding property transaction planning including capital gains tax and TDS under Section 195.
Assisting in estate and succession planning to minimise inheritance tax liabilities.
Ensuring compliance with U.S. reporting requirements (FBAR, FATCA) and timely Indian NRI tax filings.
Representing you in tax disputes with IRS or Indian Income Tax Department.

2. Recent Indian Tax Law Updates Impacting NRIs

The proposed Income Tax Bill 2025 retains the 182-day residency rule, maintains the RNOR classification, revises tax slabs, and raises the tax-free income threshold.
The threshold for TCS on LRS remittances increased to INR 10 Lakhs with relief for education loans.
Rental income rules now allow exemption for two self-occupied properties.
The ITAT April 2025 ruling offers zero capital gains tax on mutual funds for NRIs residing in countries with favorable DTAA provisions.
Tax filing deadlines for Updated Tax Return (ITR-U) extended from 12 to 48 months.
Indian authorities have increased scrutiny on cross-border transactions, making robust compliance crucial.

3. Why Choose an Indian-Origin Tax Lawyer San Jose?

A specialised tax lawyer San Jose with expertise in both U.S. and Indian laws provides:

Holistic tax planning customised to your financial situation.
Simplification of complex international filing and compliance requirements.
Risk mitigation against double taxation and non-compliance penalties.
Personalised strategies, whether you are salaried, an investor, a business owner, or managing an inheritance.
Up-to-date advice on changing tax laws and rulings.

Common FAQs for Indian NRIs & OCIs

Q1: As an H1B visa holder in San Jose, how do I avoid double taxation?

A: You are taxed on worldwide income in the U.S. and only on Indian-sourced income in India. Use the DTAA to claim tax credits and ensure proper filing with a tax lawyer San Jose.

Q2: What are the tax implications of selling inherited Indian property?

A: Capital gains tax applies in India; report the sale in the U.S. and claim foreign tax credits with expert guidance.

Q3: How is interest on NRE and NRO accounts taxed?

A: NRE interest is tax-exempt in India but taxable in the U.S. NRO interest is taxable in both. Proper reporting and DTAA benefits are essential.

Q4: What initial steps should a new NRI in San Jose take for tax planning?

A: Determine tax residency, gather financial details for both countries, comply with reporting, and file Indian tax returns by July 31.

Q5: Are there recent tax benefits for NRIs on Indian investments?

A: Yes, including zero capital gains tax on mutual funds per the 2025 ITAT ruling and reliefs in the proposed Income Tax Bill 2025.

Conclusion

For Indian NRIs in San Jose, managing U.S. and cross-border taxes is complex but manageable with expert help. A dedicated tax lawyer San Jose ensures accurate filings, compliance with evolving laws, strategic tax planning, and optimal financial outcomes.

About LawCrust

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 Lawyer San Jose: Expert Cross-Border Tax Filing & Planning for Indian NRIs