US Rental Property After Moving to India: Schedule FA + Form 67
Own US rental from India? US Schedule E, India RNOR/ROR tax, Schedule FA disclosure, Form 67 FTC, and FBAR if accounts exceed USD 10K.
The 60-second version
A US rental does not disappear from your tax life when you land in India. You now run two tax systems on the same property — and India wants Schedule FA even when the net rent is small.
Two countries, one rental
I treat a US rental as three problems: US federal + state reporting (Schedule E), India residency taxation (RNOR/ROR), and India asset disclosure (Schedule FA).
During RNOR, foreign rental may still be outside India tax scope for some returnees. The year you become ROR, India generally taxes worldwide income — and Schedule FA applies if you are a resident with foreign assets above thresholds.
Form 67 is mandatory if you claim US tax paid as credit against Indian tax on the same rental income.
Selling later? Read the US real estate sale guide — FIRPTA and India capital gains stack differently from annual rent.
Document map for US rental while resident in India
| Document | Country | When required |
|---|---|---|
| Schedule E + Form 1040 | US | Every year you own the property |
| State landlord return | US | If property in income-tax state |
| Schedule FA | India | Resident with reportable foreign asset |
| Schedule FSI + TR | India | When India taxes the rent |
| Form 67 | India | Before claiming US tax credit |
| FinCEN 114 FBAR | US | If foreign accounts aggregate > USD 10K |
Annual compliance sequence
Export US rent ledger
Gross rent, expenses, depreciation, mortgage interest — match Schedule E line by line.
Confirm India residency status
RNOR vs ROR for the full financial year, not just landing month.
Disclose in Schedule FA
Property address, acquisition date, and year-end value in INR per CBDT rules.
File Form 67 before ITR
Attach proof of US tax paid or withheld on rental income.
Reconcile FTC
Ensure you do not double-claim the same dollar of tax in both countries.
Rent cash flow vs tax reporting
Year-one landlord checklist
- US property manager sends annual income statement.
- Depreciation schedule still tracked for US basis.
- India Schedule FA row completed.
- Property insurance and LLC docs stored for seven years.
- FBAR checked if US account balances exceed threshold.
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Do not skip Schedule FA on low rent
Net rent can be small while asset value is large. Schedule FA cares about foreign immovable property held, not just positive cash flow.
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Is US rental taxed in India during RNOR?
Often foreign-source rent is outside India scope during RNOR, but Schedule FA and US reporting still apply. Confirm with your CA for your landing date.
Do I need a US CPA after moving?
Yes, if you still file US returns or have state obligations. India CA alone cannot replace US Schedule E expertise.
What exchange rate for Schedule FA?
Use the CBDT-prescribed rate for the relevant date — typically telegraphic transfer buying rate on 31 March.
Does DTAA eliminate double tax?
Article 6 and FTC mechanics reduce double tax; they do not eliminate filing in both countries.
Should I sell before becoming ROR?
Sometimes, but broker access, FIRPTA, India capital gains, and reinvestment plans matter more than a single tax-rate comparison.
What if the property is in an LLC?
US entity reporting may trigger Form 5471 or other disclosures. Treat LLC ownership as a separate compliance thread.
Your tax year is already running.
RNOR status, exit timing, and DTAA benefits all depend on decisions you make before you land. Don't guess.