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  Top 5 Tax Mistakes Green Card Holders in India Make with Mutual Funds & PFICs Green Card holders residing in India, investing in mutual funds and PFICs (Passive Foreign Investment Companies) can offer attractive opportunities for wealth accumulation and diversification. However, navigating the complex terrain of USA taxes laws and reporting requirements is essential to avoid potential pitfalls and ensure compliance. But navigating the tax implications of these investments can be a minefield. Here's a breakdown of the top 5 tax mistakes Green Card holders in India make with mutual funds and Passive Foreign Investment Companies (PFICs), along with how to avoid them: Misunderstanding Tax Residency: One of the maximum common mistakes is misunderstanding tax residency repute. Green Card holders may additionally anticipate they're mechanically taken into consideration as citizens for tax purposes in India. However, the dedication to tax residency is based on the number of day...

  US Tax Obligations as a Green Card Holder in India: A Balancing Act Mutual Funds, PFICs, and Reporting Introduction Living in India with a Green Card (Permanent Resident status) in the US provides unique tax considerations, especially when it comes to investments. This blog dives into US tax obligations for Green Card holders in India, focusing on mutual funds and Passive Foreign Investment Companies (PFICs). US Taxpayers: Income Around the World, Even in India As a Green Card holder, you are considered a US taxpayer for tax purposes. This means you are responsible for reporting your worldwide income, including any investment income generated in India, on your US tax return. Indian Mutual Funds and US Taxes: Taxable Income: Dividends and capital gains from Indian mutual funds are generally taxed as income in the US. The tax rate depends on the type of gain (short-term vs. long-term) and your tax bracket. PFICs: A Tax Labyrinth Most Indian Mutual Funds are PFICs: PFICs (Passive Fo...