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The Times Of India.
By Deepa Venkatraghvan.
Lakshmi Iyer and her husband Ganesh have been living in Bangalore, India for the last 40 years. Recently, their son, a US citizen, sponsored their Green Card and they are now US Green Card holders.
For the Iyers, presently the Green Card is just an easier access route to the US. It will enable them visit the US anytime and stay for any length of time. They do not intend to move to the US right away. Perhaps, at some point in the future they would make the move, but they have not made up their minds yet.
But convenience aside, there are certain tax and compliance issues that are extremely important before taking a decision to get a Green Card without actually living in the US. "A few years ago, it may not have been very grave to fail in these compliances. But today, the IRS is increasing its focus on offshore assets. It is very important for individuals to assess the consequences before they apply for their Green Card," advices Roy Vargis, Illinois based CPA and promoter of Home - Indian CPA Indian Tax Consultant Indian Accountant
Vaidya advices, "Most elderly people opt for Green Card to unite and stay with children as they foresee hurdles in obtaining visas and traveling. My advice for high networth individuals is to evaluate the situation carefully for future issues arising for tax compliance in US as well as in India for wealth tax issues as well."
"My advice is that if you are a wealthy individual with significant assets and financial interests in India, think twice before you apply for your Green Card. Unless you plan to move permanently to the US getting a Green Card may pose more challenges than conveniences. It may not be as much of a problem for those with lower income or smaller assets in India," Vargis concludes.
By Deepa Venkatraghvan.
Lakshmi Iyer and her husband Ganesh have been living in Bangalore, India for the last 40 years. Recently, their son, a US citizen, sponsored their Green Card and they are now US Green Card holders.
For the Iyers, presently the Green Card is just an easier access route to the US. It will enable them visit the US anytime and stay for any length of time. They do not intend to move to the US right away. Perhaps, at some point in the future they would make the move, but they have not made up their minds yet.
But convenience aside, there are certain tax and compliance issues that are extremely important before taking a decision to get a Green Card without actually living in the US. "A few years ago, it may not have been very grave to fail in these compliances. But today, the IRS is increasing its focus on offshore assets. It is very important for individuals to assess the consequences before they apply for their Green Card," advices Roy Vargis, Illinois based CPA and promoter of Home - Indian CPA Indian Tax Consultant Indian Accountant
Vaidya advices, "Most elderly people opt for Green Card to unite and stay with children as they foresee hurdles in obtaining visas and traveling. My advice for high networth individuals is to evaluate the situation carefully for future issues arising for tax compliance in US as well as in India for wealth tax issues as well."
"My advice is that if you are a wealthy individual with significant assets and financial interests in India, think twice before you apply for your Green Card. Unless you plan to move permanently to the US getting a Green Card may pose more challenges than conveniences. It may not be as much of a problem for those with lower income or smaller assets in India," Vargis concludes.
