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Navigating US-India Tax Rules: How Sunnyvale Tax Lawyers Help NRIs Manage Cross-Border Finances

Sunnyvale Tax Lawyers Assisting NRIs With Cross-Border Tax Compliance & Financial Planning

For Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) living in the United States, dealing with taxes across two countries is not only challenging—it’s risky without professional help. With evolving Indian and U.S. tax laws, growing financial scrutiny, and compliance obligations, NRIs must make smart, lawful decisions. This is where Sunnyvale tax lawyers step in—offering expert NRI tax help, double taxation avoidance, and property sale tax assistance, ensuring peace of mind and strategic growth for HNIs and global Indian families.

Why NRIs in the U.S. Need Sunnyvale Tax Lawyers

As an NRI, you might own real estate in India, invest in mutual funds, earn rental income, or repatriate funds to support family. These cross-border financial footprints create tax liabilities in both countries. Without expert guidance, you risk double taxation, penalties, or missed deductions.

The India–USA Double Taxation Avoidance Agreement (DTAA) is the legal shield that helps NRIs avoid being taxed twice. But using this treaty correctly involves interpreting legal provisions, documentation, and proof of tax residency. Sunnyvale tax lawyers ensure these intricacies are handled professionally, keeping you fully compliant and financially secure.

1. Key Areas Where Sunnyvale Tax Lawyer Support NRIs & OCIs

  • Tax Residency Determination

Your residency status defines your tax scope. The IRS uses the Substantial Presence Test and Green Card Test, while Indian law under the Income Tax Act, 1961, has its own criteria. Sunnyvale lawyers assess dual-status risks and protect you from incorrect declarations.

  • Double Taxation Avoidance (DTAA)

NRIs can claim tax credits or reduced rates using the India–USA DTAA. Whether it’s on capital gains, interest income, or dividends, your legal advisor helps optimise this treaty’s full benefits.

  • Property Sale Tax Assistance

Selling property in India attracts Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG):

  1. STCG (held <24 months): Taxed at slab rate + 30% TDS
  2. LTCG (held >24 months): Taxed at 20% with indexation + surcharge/cess = ~23.92% TDS

New rules from July 2024 may lower LTCG TDS to 12.5% without indexation. Sunnyvale tax lawyers help NRIs obtain lower TDS certificates under Section 197, minimising excess tax payments.

  • Foreign Asset & Income Reporting

NRIs must comply with FATCA, FBAR, and India’s Black Money Act. Non-disclosure of foreign accounts or crypto holdings can lead to hefty fines. Sunnyvale tax attorneys handle these disclosures, ensuring protection under both jurisdictions.

  • NRI Tax Filing & Compliance

NRIs must file:

  1. Indian Income Tax Returns (ITR-2)
  2. U.S. Tax Returns (Form 1040, FBAR, FATCA Forms 8938)
  3. DTAA claim forms with TRC (Tax Residency Certificate)

2. Latest Legal Updates for NRIs

  • Income Tax Bill 2025 (India)
  1. Mandatory pre-departure PAN, travel details for NRIs
  2. Enhanced withholding tax on certain remittances
  3. Stricter classification for RNOR (Resident but Not Ordinarily Resident) status
  • U.S. 5% Remittance Tax Proposal

A GOP-led proposal to charge 5% on international transfers by non-citizens could make regular fund transfers from the U.S. to India costlier. Timely planning is vital.

  • ITAT Rulings (India)
  1. Mutual Funds Exemption: NRIs from DTAA countries like UAE, Singapore, Portugal, etc., need not pay Indian capital gains tax on mutual fund redemptions.
  2. Gift Tax Exemption: Gifts between step-siblings now count as “relatives” under Section 56(2)(vii), exempt from tax.

3. Wealth & Financial Planning for NRI HNIs

With expert advice from Sunnyvale tax lawyers, NRIs can:

  • Structure Indian and U.S. investments for maximum tax efficiency
  • Plan estate transfers and wills under cross-border succession laws
  • Repatriate funds within RBI & FEMA limits
  • Avoid compliance errors on foreign assets

Top 5 FAQs by NRIs & OCIs

Q1. Do I have to file taxes in both India and the U.S.?

Yes. India taxes you on Indian income. The U.S. taxes worldwide income. You can use DTAA to avoid double taxation and claim credits.

Q2. What is the TDS when I sell property in India as an NRI?

  • STCG: 30% + surcharge
  • LTCG: 20% with indexation (~23.92%)
    You can apply for lower TDS under Section 197 if your tax due is lower.

Q3. What are the new foreign asset disclosure rules for NRIs?

The Income Tax Bill 2025 mandates disclosure of global assets, crypto, and foreign real estate. Sunnyvale tax lawyers help ensure compliance.

Q4. How does DTAA work for dividends and interest income?

It offers lower withholding tax rates (e.g., 15% instead of 30%) and allows foreign tax credits to avoid double taxation.

Q5. Will the proposed U.S. 5% remittance tax affect me?

If passed, non-citizens may pay 5% on outbound transfers. It’s critical to re-evaluate large remittances and adjust your financial strategy.

Outlook

For NRIs and OCIs with dual financial footprints, cross-border tax compliance is no longer optional—it’s critical. Indian tax laws, DTAA treaties, and U.S. financial reporting regimes are evolving rapidly. With the right legal team by your side, you can remain fully compliant, reduce risks, and secure your financial legacy across jurisdictions.

Conclusion

Managing cross-border tax issues is no easy feat, especially for NRIs in the U.S. With the help of Sunnyvale tax lawyers, you can address complex matters like double taxation avoidance, foreign account compliance, and property sale tax assistance with confidence. LawCrust Legal Consulting ensures your tax strategy remains proactive, legally sound, and customised to your global aspirations.

Why Choose LawCrust for Your NRI Tax Help?

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.

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