FBAR Basics for US Persons with Indian Accounts

Guide · Last reviewed October 10, 2026 · Legal and tax review: pending

The FBAR, formally the Report of Foreign Bank and Financial Accounts filed on FinCEN Form 114, is a separate filing from your income tax return. It is required of US persons who have foreign financial accounts above a threshold. Many people with Indian accounts do not know it exists until a bank asks questions or an adviser reviews past returns.

Key rules at a glance

Topic	General rule	Notes
Who files	US persons: citizens, green card holders and others who meet the US person definition	Residence and citizenship determine status; check your facts
Threshold	Combined value of all foreign financial accounts exceeds $10,000 at any time during the calendar year	It is an aggregate test, so several small accounts can add up
What counts	Bank accounts, brokerage and demat accounts, mutual funds, certain insurance policies with cash value, and other financial accounts	Real estate held directly is generally not an FBAR account
Due date	April 15 of the year after the calendar year reported, with an automatic extension to October 15	Confirm the current FinCEN due date guidance each year
How to file	Electronically through the FinCEN BSA E-Filing System	Paper filing is not the normal route
Penalties	Civil penalties can apply for late or inaccurate filings, and can be severe, especially in cases judged willful	Past years may still be fixable; see our FAQ and consultation page

The threshold is an aggregate test

Add together the highest balance of each foreign account during the year, converted to US dollars. If the total exceeds $10,000 at any point, you must file. Joint accounts and accounts where you have signature authority can count, even when the money is not yours. Check the threshold each year, because one large deposit can trigger a filing for a year when you thought you were under.

Worked exampleAn NRE savings account peaks at $6,000 in USD terms in March. A demat account peaks at $5,500 in August. The total is $11,500 at the time of the peak, which is over $10,000, so an FBAR is required even though neither account alone crosses the threshold. The example is simplified; the actual rule looks at the account balances and conversion rules for each account.

Currency conversion

Indian accounts are held in rupees, so each balance must be converted to US dollars. FinCEN requires the use of specified Treasury rates of exchange rather than a rate you choose. Keep a record of the balances and the rates used, and do not estimate. Our team can show you how the conversion works in your case.

Related filings

Form 8938 (FATCA): filed with your income tax return. Its thresholds are different and depend on filing status and residence. Many people must file both forms.
Form 8621 (PFIC): required for certain foreign mutual funds. See mutual funds and PFIC.
Form 3520 and 3520-A: may apply to foreign trusts and some foreign retirement arrangements. See EPF and PPF.

Common mistakeAssuming that because a bank account is in India and the money is yours, no US reporting applies. US persons are generally taxed on worldwide income and must report foreign accounts regardless of where the money came from.

Next steps

List every Indian account and product you have held in each year, including closed ones.
Record the highest balance of each account during each year.
Check which forms apply using our accounts chart.
If a year was missed, do not file on your own without reviewing options. Request a review.

General educational information. FBAR, Form 8938 and related rules depend on individual facts and change over time. Confirm current thresholds, due dates and forms on fincen.gov and irs.gov, and consult a qualified professional before filing.