Moving to the US from India on L1 Visa – Tax Advisory

The US reporting side is something you should definitely discuss with a US tax professional who handles immigrants and foreign assets.

After becoming subject to US worldwide-income taxation, certain Indian accounts and investments can create additional reporting requirements. Depending on the account, balance and your circumstances, forms such as FBAR or other foreign-asset reporting forms may become relevant.

Indian mutual funds can also require special attention from a US tax perspective. Don't assume that because something is tax-efficient or straightforward in India, it will receive the same treatment in the US.

I would keep complete records of your purchase dates, purchase prices, statements, dividends, interest and sale transactions. Having those records from the beginning can save a lot of trouble later.

I went through a similar move, although my visa was different.

One thing I wish I had checked earlier was my Indian bank account status. Once you become a non-resident under FEMA, continuing to treat an ordinary resident savings account as before may not be appropriate.

NRIs commonly use NRO accounts for Indian income and NRE accounts for eligible overseas funds. The exact account structure depends on your circumstances and the bank's requirements.

I would also make a list of all your Indian financial assets before leaving:

• Savings accounts
• Fixed deposits
• Mutual funds
• Shares
• Property
• Insurance policies
• Demat accounts
• Pension-related investments

Don't just look at the tax return. Your banking and investment records may also need updating after your residential status changes.

The first thing I would look at is tax residency, rather than the L1 visa itself.

Your US immigration status and US tax residency are related but aren't necessarily the same question. US tax residency can depend on the applicable residency rules and the number of days you are physically present in the US.

On the Indian side, your residential status is determined under Indian income-tax rules based on your stay in India and the applicable conditions for that financial year.

The year in which you move can therefore require more careful analysis because you may have Indian-source income while also becoming subject to US tax rules.

I would make a timeline showing your departure date from India, arrival date in the US, salary start date, and any income received in India during the year. That makes the discussion with a tax professional much easier.