FATCA & CRS for NRIs: Full Form, Meaning & Compliance

Rajesh, an NRI software engineer in California, received an urgent email from his Indian mutual fund company. His account was frozen due to incomplete FATCA and CRS declarations. He had invested 10 lakh rupees six months ago, but now he couldn't access his funds or make new investments.

Situations like this catch many NRIs who don't understand their cross-border tax reporting obligations. If you're an NRI in the US investing in India, understanding FATCA CRS reporting isn't optional anymore. It's a legal requirement that affects your ability to invest, avoid penalties, and maintain financial accounts in both countries.

What is FATCA and How Does it Affect NRIs?

FATCA stands for Foreign Account Tax Compliance Act, a US federal law enacted in 2010 as part of the Hiring Incentives to Restore Employment (HIRE) Act. The primary goal is preventing US taxpayers from hiding assets in foreign countries to evade taxes.

For NRIs living in the US, FATCA creates reporting obligations in two directions. First, you must report your Indian investments and accounts to the IRS if they exceed certain thresholds. Second, Indian financial institutions must collect information about your US tax status and report it to Indian tax authorities, who then share it with the IRS.

Understanding FATCA: The Basics

FATCA requires foreign financial institutions, including Indian banks and mutual fund companies, to identify accounts held by US persons. These institutions must report account balances, income earned, and other financial details to their local tax authority. India signed a Model 1 Inter-Governmental Agreement (IGA) with the US on July 9, 2015. Under it, Indian financial institutions, including the Indian branches of foreign banks, report to Indian tax authorities rather than directly to the IRS.

The mechanism works through automatic information exchange. When you open an NRE account or invest in Indian mutual funds, the institution collects your FATCA self-declaration. This information flows from the financial institution to the Central Board of Direct Taxes (CBDT) in India, which then transmits it to the IRS.

Who Qualifies as a "US Person" Under FATCA?

Understanding whether you're a US person determines your FATCA obligations. You qualify as a US person if you are a US citizen, regardless of where you live. This includes people born in the US who now live in India. US green card holders are also considered US persons, even if they spend most of their time outside America.

Tax residency also matters. If you meet the substantial presence test by being physically present in the US for at least 31 days during the current year and 183 days during the three-year period that includes the current year (counting all days in the current year, one-third of the days in the prior year, and one-sixth of the days in the year before that), you're treated as a US resident for tax purposes and therefore a US person. Domestic partnerships and corporations organized in the US also fall under this category.

Certain visa holders have exemptions. Students on F, J, M, or Q visas who substantially comply with their visa terms generally do not count their days of US presence for up to five calendar years. Teachers and trainees on J or Q visas generally cannot exclude their days if they were already exempt for any part of two of the six preceding calendar years. Exempt individuals file Form 8843 to claim the exemption.

Which Indian Investments Fall Under FATCA?

FATCA covers a broad range of financial accounts and assets in India. Your NRE, NRO, and FCNR bank accounts all require FATCA reporting. These NRE vs NRO vs FCNR accounts have different features, but all fall under FATCA requirements.

Mutual fund investments and equity holdings in Indian companies must be reported. Fixed deposits, recurring deposits, and Public Provident Fund (PPF) accounts are included. Life insurance policies with cash value and pension plans like the National Pension System (NPS) also fall under FATCA.

Some assets don't require FATCA reporting. Physical assets like jewelry, art, antiques, and cars are excluded. Real estate property that you directly own (not through a partnership or company) doesn't need reporting. Foreign currency and precious metals that you hold directly, outside a financial account, are also excluded.

What is CRS and Why Do NRIs Need to Know About It?

CRS stands for Common Reporting Standard, an international framework developed by the Organisation for Economic Co-operation and Development (OECD). Unlike FATCA which is US-specific, CRS creates a global automatic exchange of financial account information among participating countries.

India joined the Multilateral Competent Authority Agreement for CRS on June 3, 2015, as an early adopter of the standard. This means Indian financial institutions must identify account holders who are tax residents of other CRS participating countries and report their information.

CRS vs FATCA: Key Differences

While both frameworks aim to prevent tax evasion, they have distinct differences. FATCA applies only to US persons and is a US law. CRS applies to tax residents of over 100 participating countries and is a multilateral agreement.

FATCA also places a filing duty on US taxpayers themselves: Form 8938 applies once your specified foreign financial assets cross its thresholds, which start at $50,000 for a single filer living in the US. CRS places no filing duty on you as an individual. Your part is the self-declaration you give your financial institution, and the institution handles the reporting.

The reporting mechanism differs too. Under FATCA, Indian institutions report to CBDT, which forwards information to the IRS. Under CRS, Indian institutions report to CBDT, which exchanges information with tax authorities in the account holder's country of tax residence through automatic exchange channels.

India's CRS Implementation for NRIs

Indian financial institutions must conduct due diligence to determine the tax residency of all account holders. When you open a new account or investment, you'll be asked to complete a CRS self-certification form. This form collects your country of tax residence and Tax Identification Number (TIN) from that country.

For NRIs, this typically means declaring your country of residence outside India. If you live in a CRS-participating country other than the US, you'd declare that country as your tax residence and provide its TIN. The Indian institution then reports your account information to Indian tax authorities, who share it with the tax authority of that country.

The information reported includes your name, address, country of tax residence, TIN, account balance, and income earned. Joint account holders must each complete separate CRS declarations.

Which Countries Are Part of CRS?

Over 100 jurisdictions have committed to exchanging information under CRS. The United States does not participate in CRS and relies on its own FATCA system instead.

For NRIs, this means if you're a tax resident in any CRS participating country (except the US), you must complete CRS declarations when investing in India. Tax authorities in your country of residence will automatically receive information about your Indian accounts and investments.

What Forms Do NRIs Need to File?

NRIs in the US face multiple reporting requirements across different authorities. Understanding which forms apply to your situation prevents costly mistakes and penalties.

Form 8938: Statement of Specified Foreign Financial Assets

Form 8938 is the primary FATCA reporting form for US taxpayers. You file this form with your annual federal income tax return (Form 1040). The form requires you to list all specified foreign financial assets that exceed the reporting threshold.

Specified foreign financial assets include foreign bank accounts, foreign stocks and securities not held in US financial institutions, partnership interests in foreign entities, and foreign pension plans. The form requires detailed information including the financial institution's name and address, account number, maximum value during the year, and any income earned.

Form 8938 is due on the same date as your tax return, typically April 15, with automatic extensions available until October 15 if you file for a tax extension. You must file electronically if you e-file your tax return, or attach a paper copy if you file by mail.

FBAR (FinCEN Form 114): Foreign Bank Account Report

FBAR is a separate reporting requirement under the Bank Secrecy Act, not part of FATCA but often confused with it. You must file FBAR if the aggregate value of your foreign financial accounts exceeds $10,000 at any time during the calendar year.

FBAR covers foreign bank accounts, brokerage accounts, mutual funds, and certain retirement accounts. Unlike Form 8938, FBAR is not filed with the IRS. You file it electronically through the Financial Crimes Enforcement Network (FinCEN) BSA E-Filing System.

The filing deadline is April 15, with an automatic extension to October 15 without needing to request it. FBAR requires less detailed information than Form 8938 but has stricter penalties for non-compliance. You report the maximum account value during the year in US dollars.

FATCA/CRS Self-Declaration Forms in India

When you open accounts or invest in India, financial institutions require FATCA and CRS self-declaration forms as part of your KYC process. These are not filed with tax authorities but submitted directly to the bank or mutual fund company.

The self-declaration form collects information about your citizenship, tax residency, place of birth, and Tax Identification Number. US citizens must indicate the United States as their country of tax residence even if they've returned to India and are now Indian residents.

You can submit these forms online through the institution's portal or offline at branch offices. For mutual funds, registrar and transfer agents such as CAMS or KFintech let you update these details across fund houses, usually with OTP verification. On mutual fund and bank portals, this step often appears as "FATCA details" or a FATCA/CRS declaration within KYC, and the fund house, as an Indian financial institution, uses it to decide whether your folio must be reported. If you are a US taxpayer holding Indian mutual funds, the US side raises separate questions covered in our guide to FATCA vs PFIC rules.

What Are the Filing Thresholds for NRIs in the US?

Understanding the specific dollar thresholds determines whether you must file. The thresholds vary based on your location and filing status.

Form 8938 Thresholds Based on Your Situation

If you live in the United States, the thresholds are lower. Single filers or married filing separately must file if foreign assets exceed $50,000 on the last day of the tax year, or $75,000 at any time during the year. Married couples filing jointly must file if assets exceed $100,000 on the last day or $150,000 at any time during the year.

If you live abroad, you get higher thresholds. You're considered living abroad if you're a US citizen who has been a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year, or a US citizen or resident who is present in a foreign country for at least 330 full days during any 12 consecutive months ending in the tax year. Single filers abroad must file if assets exceed $200,000 on the last day or $300,000 anytime. Married couples filing jointly abroad must file if assets exceed $400,000 on the last day or $600,000 anytime.

These thresholds apply to the aggregate value of all your specified foreign financial assets combined, not per account. Convert foreign currency amounts to US dollars using the US Treasury Bureau of the Fiscal Service exchange rate for the last day of the tax year.

FBAR Thresholds: The $10,000 Rule

FBAR has a single, straightforward threshold of $10,000. If the aggregate maximum value of all your foreign financial accounts exceeds $10,000 at any point during the calendar year, even for just one day, you must file FBAR.

This threshold applies regardless of where you live or your filing status. Because $10,000 is far lower than the Form 8938 thresholds, FBAR is much easier to trigger. Many NRIs with modest investments in India find themselves needing to file FBAR even if they don't meet the Form 8938 threshold.

Calculate the aggregate value by adding the maximum balances of all foreign accounts during the year. You don't need to combine account balances on the same day. Use the maximum value each account reached at any point during the year.

Real-World Scenarios: Do You Need to File?

Let's look at practical examples to clarify when filing is required.

Scenario 1: Priya lives in Texas and is single. She has an NRO account with a maximum balance of 15 lakh rupees (approximately $18,000) during the year. She doesn't have any other foreign accounts or assets.

Priya must file FBAR because her account exceeded $10,000. She doesn't need to file Form 8938 because her assets didn't reach $50,000 at year-end or $75,000 at any time.

Scenario 2: Amit and Meera are married and file jointly. They live in California. Amit has an NRE account with 25 lakh rupees ($30,000) and Meera has mutual fund investments worth 30 lakh rupees ($36,000). Their combined maximum value was $66,000 during the year, and year-end value was $63,000.

They must file FBAR because their combined accounts exceeded $10,000. They don't need to file Form 8938 because their combined assets didn't reach $100,000 at year-end or $150,000 at any time during the year.

Scenario 3: Vikram works in Dubai but is a US green card holder. He has investments in India worth 1.8 crore rupees (approximately $216,000) at year-end, which peaked at 2 crore rupees ($240,000) mid-year.

Vikram must file both FBAR and Form 8938. His accounts exceed $10,000 (FBAR requirement). Even under the higher living-abroad thresholds, which he can use if he is present outside the US for at least 330 full days in a 12-month period, his assets exceed the $200,000 year-end threshold for Form 8938.

How to Complete FATCA and CRS Declarations in India?

Completing your FATCA and CRS declarations properly ensures your Indian investments remain accessible and compliant. Here's the step-by-step process.

Step 1: Gather Required Documents

Before starting your declaration, collect all necessary documents. You'll need your PAN card, which is mandatory for any financial transaction in India. Your passport serves as proof of citizenship and identity. Keep your overseas address proof ready, such as a utility bill, bank statement, or residence certificate from your current country.

Your Tax Identification Number is critical. For US taxpayers, this is your Social Security Number or Individual Taxpayer Identification Number (ITIN). If you're a tax resident in another country under CRS, provide that country's TIN. Keep details of your existing Indian financial accounts handy, including account numbers and institution names.

For NRE, NRO, or FCNR accounts, have your bank account statements showing recent transactions. If you're investing in mutual funds, keep your folio numbers accessible. Employment details including your occupation and gross annual income range will be required.

Step 2: Fill Out the Self-Declaration Form

The FATCA/CRS self-declaration form is typically provided by your financial institution during account opening or investment. The form contains several sections that must be completed accurately.

Section 1 covers personal information including your name as per PAN, date of birth, and father's name. Provide your current residential address abroad with complete details including street, city, state, and country.

Section 2 addresses tax residency. You must declare all countries where you're considered a tax resident. For US green card holders or citizens, you must select "United States" even if you don't currently live there. Provide your TIN (SSN or ITIN) in the designated field.

Section 3 asks about your place and country of birth. US-born individuals must indicate "United States" even if they're now Indian citizens or OCI holders. This is a key identifier for FATCA purposes.

Section 4 covers your occupation and gross annual income range. Select from the provided ranges honestly, as this information is verified against other financial data.

Section 5 is the self-certification statement. By signing, you confirm that all information provided is true and accurate. You acknowledge that providing false information can result in penalties and account restrictions.

Step 3: Submit to Your Financial Institution

Once completed, submit the form through your institution's preferred channel. Most banks and mutual fund companies offer online submission through their customer portals. Log in with your credentials, navigate to the KYC or FATCA/CRS section, and upload scanned copies of your completed form and supporting documents.

For offline submission, visit the nearest branch with your completed form and original documents. The institution will verify your documents and provide acknowledgment of receipt. Some institutions require you to complete the form in their presence.

For mutual fund investments, you can use Registrar and Transfer Agencies like CAMS (Computer Age Management Services) or KFintech. These centralized platforms allow you to update KYC for multiple mutual funds at once. Visit their website, complete the online form, and verify using OTP sent to your registered mobile number.

Keep acknowledgment receipts and reference numbers for your records. Processing times vary by institution, and you'll receive confirmation once your KYC is updated.

What Information You Need to Provide

The standard information required includes your full name matching your PAN card, permanent and current addresses, nationality and citizenship status, and tax residency details for all applicable countries. Your TIN from each country of tax residence is mandatory.

For joint accounts, each holder must complete a separate declaration. Provide relationship details and TIN for all joint holders. If you're a controlling person in an entity (company or partnership), additional information about the entity and your control percentage is required.

Update this information promptly whenever your circumstances change. Moving from the US to India, changing citizenship status, or acquiring new tax residency in another country all require immediate updates to your FATCA/CRS declarations.

What Happens If You Don't Comply?

Non-compliance with FATCA and CRS carries serious consequences on both the US and Indian sides. Understanding these penalties emphasizes why proper compliance matters.

US Penalties for Not Filing Form 8938

The initial penalty for failing to file Form 8938 is $10,000. This penalty applies even if you don't owe any additional tax. If you don't file within 90 days after the IRS mails you a notice of failure to file, an additional $10,000 penalty is assessed for each 30-day period the failure continues.

The additional penalty for continued failure is capped at $50,000, so the total can reach $60,000. This is separate from any tax penalties. If you have underpayment of tax attributable to non-disclosed foreign financial assets, you face an additional 40% penalty on the underpayment amount.

The statute of limitations is also extended. Normally, the IRS has three years to assess additional taxes. If you fail to file Form 8938 or fail to report a required asset, the statute of limitations for that year may stay open for all or part of your return until three years after the date you file Form 8938. If you omit more than $5,000 of income related to specified foreign financial assets, the statute extends to six years.

FBAR Penalties: What You Risk

FBAR penalties are typically more severe than Form 8938 penalties. For non-willful violations, the statute sets a maximum penalty of $10,000 per violation, and that maximum is adjusted each year for inflation. Following the Supreme Court's decision in Bittner v. United States, the IRS treats a non-willful violation as one penalty per FBAR report, not one per account.

Willful violations carry much harsher penalties. The statutory maximum is the greater of $100,000 (adjusted each year for inflation) or 50% of the account balance at the time of the violation, assessed per account. If you have five accounts and willfully fail to report them, you could face penalties on each account.

Criminal penalties can apply in severe cases. Criminal FBAR violations can result in a fine, up to five years in prison, or both.

The IRS does offer relief programs for taxpayers who come forward voluntarily. The Streamlined Filing Compliance Procedures allow eligible taxpayers to catch up on late filings with reduced penalties if the failure was non-willful.

India-Side Penalties for Incomplete FATCA/CRS

Indian income-tax law penalizes the reporting financial institutions themselves. An institution that furnishes an inaccurate statement of reportable accounts, or fails to follow the prescribed due diligence, can be directed to pay a penalty of 50,000 rupees.

Since October 1, 2024, there is also a penalty tied to your own declaration. If an institution's statement is inaccurate because an account holder gave false or inaccurate information, the institution must pay 5,000 rupees for every inaccurate reportable account, and it can recover that amount from the account holder.

If you have three bank accounts, five mutual fund investments, and two insurance policies, and inaccurate information in your self-certifications makes all ten accounts inaccurate in the institutions' statements, up to 50,000 rupees (10 accounts × 5,000) could be recovered from you.

Your accounts can be frozen until you complete proper FATCA/CRS declarations. Banks and mutual fund companies can restrict transactions on accounts with incomplete KYC. You won't be able to make new investments, redeem existing investments, or sometimes even access your funds until compliance is restored.

Real Cost of Non-Compliance

Beyond financial penalties, non-compliance creates operational problems. Your ability to invest in India becomes severely restricted. Claiming DTAA benefits is a separate process that depends on proof of your tax residency abroad, so keep the residency you declare to institutions consistent with it.

Increased scrutiny from tax authorities follows non-compliance. Both IRS and Indian Income Tax Department use FATCA/CRS data to identify potential tax evaders. Getting flagged can trigger audits and detailed investigations into all your financial affairs.

The stress of dealing with penalties and restricted accounts far exceeds the effort required to stay compliant.

What Are the Common Mistakes NRIs Make?

Understanding frequent errors helps you avoid them. These mistakes often result from confusion about requirements rather than intentional non-compliance.

Mistake 1: Not Updating KYC When Status Changes

Many NRIs complete FATCA/CRS declarations when opening accounts but forget to update them when their circumstances change. Moving from the US to India changes your tax residency status, requiring immediate KYC updates. Your FATCA declaration should reflect that you're no longer a US resident, though US citizens remain subject to FATCA regardless of residence.

Acquiring or losing green card status is another trigger. Getting a green card makes you a US person for FATCA purposes. Surrendering or losing green card status (officially, not just by living abroad) changes your reporting obligations.

Changes in citizenship require prompt updates. If you acquire Indian citizenship and renounce US citizenship, you must inform all financial institutions. The process isn't automatic. Each institution maintains separate records requiring individual updates.

Address changes, especially moving to a different country, affect your tax residency under CRS. Your financial institution must report you to the correct country's tax authority based on your current tax residence.

Mistake 2: Confusing FBAR with Form 8938

Many NRIs file Form 8938 and believe they've fulfilled all reporting requirements, not realizing FBAR is separate. The forms go to different agencies (IRS vs FinCEN) and have different thresholds and covered assets.

Some NRIs file FBAR but skip Form 8938 because they think the information is duplicative. While there's overlap, both filings are legally required if you meet the respective thresholds. The penalties for missing either can be assessed separately.

The $10,000 FBAR threshold is aggregate value at any time, not year-end value. Many NRIs calculate only year-end balances and miss the FBAR requirement because their accounts were higher mid-year. Your NRO account might have 8 lakh rupees at year-end, but if it held 12 lakh rupees in July when you received rental income, you exceeded the threshold.

Mistake 3: Providing Incorrect Tax Residency Information

Tax residency isn't the same as citizenship or visa status. A common error is assuming you're only tax-resident in the country where you physically live. Tax residency rules vary by country and you can be tax-resident in multiple countries simultaneously.

US citizens and green card holders must always declare US tax residency on FATCA forms, even if they're also tax-resident elsewhere. An NRI who's been back in India for three years but still holds a green card must continue declaring US tax residency.

Using wrong TIN or providing incomplete TIN causes problems. Your TIN in the US is your Social Security Number, not your passport number or green card number. Providing incorrect TIN can trigger verification requests and delay your account activation.

Some NRIs check "No" to having US tax residency because they don't currently live in America, not realizing their citizenship or green card makes them US persons. Financial institutions use "indicia" like US birthplace or US address to identify potential US persons. Falsely denying US connection when these indicators exist constitutes providing inaccurate information.

Mistake 4: Missing the DTAA Connection

NRIs often assume that their FATCA/CRS self-declaration is enough to get lower tax deducted under a Double Taxation Avoidance Agreement. It is not. The self-declaration tells your institution where you are tax-resident for reporting purposes, while treaty relief is a separate claim.

To claim treaty rates as a non-resident, you need a Tax Residency Certificate (TRC) from the tax authority of your country of residence, and you must furnish the prescribed information form: Form 10F under the earlier Income-tax Rules, now Form 41 under the Income-tax Rules, 2026. Without these, Indian payers generally deduct tax at the higher domestic rates instead of the lower treaty rates, and the difference can be substantial on interest and dividends.

Form 67 is a different form. Residents of India use it to claim credit for foreign tax paid, so it is not how an NRI claims lower Indian TDS. Keep the tax residency you declare on FATCA/CRS forms consistent with your treaty documents, and see our guide on how to claim DTAA benefits.

How Can NRIs Stay Compliant?

Maintaining compliance doesn't need to be overwhelming. A systematic approach keeps you on track with minimal ongoing effort.

Annual Compliance Checklist

Create a compliance calendar to track important dates. Mark April 15 as your FBAR deadline with automatic extension to October 15. Your tax filing deadline (and Form 8938 deadline) is typically April 15, with extension possible until October 15 if you file Form 4868.

Review all your foreign financial accounts in December each year. Calculate maximum values during the year for FBAR purposes and year-end values for Form 8938. Convert all foreign currency amounts to US dollars using the US Treasury's year-end exchange rates.

Gather year-end statements from all Indian banks and investment accounts. Mutual fund statements should show your holdings as of December 31. Bank statements should clearly show maximum balance during the year. For capital gains, collect contract notes and sale proceeds documentation.

Check your FATCA/CRS declarations with each Indian institution annually. Log into your bank and mutual fund portals to verify that your tax residency information is current and accurate. If you've moved countries or changed status, update immediately.

Maintain organized records for at least six years. Keep copies of filed Forms 8938, FBAR submissions, FATCA/CRS declarations, and all supporting documents. Digital copies backed up to cloud storage ensure you don't lose critical compliance records.

When to Update Your Information

Immediate updates are required for specific triggers. When you move to a different country, promptly update your FATCA/CRS declarations with all financial institutions. Acquiring or surrendering citizenship in any country requires prompt notification.

Green card status changes need immediate action. Obtaining a green card means you become a US person for tax purposes from that date. Formally abandoning your green card (by filing Form I-407 and receiving acknowledgment) ends your US person status, but you must update all institutions.

Marriage or divorce can affect your filing status and thresholds. Getting married might mean you now file jointly with higher thresholds. Divorce changes you back to single filer status with lower thresholds.

Opening new accounts in India triggers FATCA/CRS declarations. Each new bank account, mutual fund investment, or insurance policy requires a fresh declaration. Don't assume information from one institution automatically transfers to another.

Employment changes affecting your income level should be updated. While not legally required mid-year, updating your income range ensures more accurate reporting when institutions file annual statements to tax authorities.

Working with Tax Professionals

Given the complexity of cross-border tax compliance, many NRIs benefit from professional help. A tax professional familiar with both US and Indian tax laws can navigate the overlap between FATCA, FBAR, and NRI tax filing requirements.

Choose professionals with specific NRI experience. A CPA or Enrolled Agent in the US should understand FATCA and FBAR requirements. An Indian Chartered Accountant should understand CBDT reporting requirements and how they interact with US obligations.

The cost of professional help is typically much less than potential penalties. Compare it with the $10,000 penalty for a missed Form 8938, before any separate FBAR penalty.

Tax professionals can also help with comprehensive financial planning for NRIs, ensuring your investment structure minimizes compliance burden while maximizing tax efficiency. They can identify whether your accounts actually need reporting or fall under exemptions.

Using Technology for Compliance Tracking

Several tools and apps help NRIs track compliance obligations. Calendar apps with recurring reminders ensure you don't miss deadlines. Set reminders for January 31 to gather documents, March 15 for organizing, and early April for filing.

Spreadsheet templates can track all your foreign accounts in one place. Include columns for institution name, account number, account type, maximum value during year, year-end value, and currency. Update it monthly and convert to US dollars at year-end using the US Treasury's exchange rates.

Password managers help secure access to multiple financial institution portals. With accounts across countries, keeping login credentials organized and secure is important for annual statement collection.

Whichever software you use for your tax return, remember that FBAR is not part of it. FBAR must be filed separately and electronically through FinCEN's BSA E-Filing System.

Conclusion

FATCA and CRS compliance isn't optional for NRIs investing in India. Complete your FATCA/CRS self-declarations accurately when opening any Indian financial account. File Form 8938 with your US tax return if your foreign assets exceed thresholds, and separately file FBAR through FinCEN if your foreign accounts exceed $10,000. Review your compliance status annually and update information immediately when your circumstances change. The consequences of non-compliance range from restricted accounts to Form 8938 penalties of up to $60,000, before any separate FBAR penalties. Taking these steps now protects your financial access and avoids unnecessary penalties. Start by reviewing your current Indian investments and checking whether your FATCA/CRS declarations are complete and accurate.