General information only. Not investment, tax or legal advice. Naming a fund category is not a recommendation to buy, hold or sell anything. Prem Tax and Accounting Corp is a CPA firm, not a law firm. Rules differ by country and change often: confirm with the official source or a qualified adviser before you act. Read the full notice. Book a 10-minute call.

Mutual Funds in India

Ten common questions about Indian funds held abroad

Short answers to ten common questions from families who hold Indian mutual funds abroad, each with a link to the guide that holds the detail and the year behind every figure.

Prepared by Prem Tax and Accounting Corp. Last checked against official sources on November 5, 2026.

These ten answers are short on purpose, and each points to the guide with the detail. Our Dinner-Table Question Round below helps a family decide which answers matter first. We prepare U.S. returns and work alongside your adviser in India, Canada or Europe. See the reporting table and our Indian CPA page.

What is Form 8621, and can I skip it?

It is the U.S. information return for a PFIC, one per fund, filed with Form 1040. A fund held without an election needs none if all PFIC units total USD 25,000 or less at year end (USD 50,000 joint), with no excess payout or gain. See the PFIC guide.

Does a folio count for the FBAR?

The IRS lists foreign mutual funds on both the FBAR and Form 8938, and we read an open-ended Indian folio as a reportable account. The FBAR is due when all foreign accounts together top USD 10,000 at any time. See the FBAR and 8938 guide.

What does the UK do with Indian funds?

The exact class decides. A gain on a class not on HMRC's reporting fund list is generally taxed as income; a class listed throughout gives a capital gain. The list of November 2, 2026 holds 10 Indian schemes from 6 fund houses. See the UK guide.

What happens if I move abroad or come back?

Update your KYC, address and FATCA and CRS form. Folios stay, as non-repatriation holdings once you are non-resident, and some fund houses then stop purchases and SIPs. See inheritance and changing residence.

Who gets my folio if I die?

Your nominees claim the units, in the shares you set. Since September 1, 2026 a folio can have up to 3. Without one, the fund house asks for papers that grow with the value. See inheritance and changing residence.

Which dates matter most?

The U.S. return and FBAR on April 15, 2027, Canada's T1135 on April 30, 2027, India's return on July 31, 2027 and the UK's 2025-26 return on January 31, 2027. See key dates.

Our checklist

The Dinner-Table Question Round:

Write down who in the family lives where, and which folios each person holds.
Pick the questions that fit, then read the linked guide.
Bring folio numbers, statements and dates to the adviser who files.

Common questions

Can I own Indian mutual funds while living in the U.S. or Canada?

We found no Indian law that bars it. Some fund houses refuse purchases from U.S. or Canadian residents, or accept them only in India, as their own policy. See [fund houses that restrict](/indian-mutual-funds/india-rules/amcs-that-restrict-us-and-canada/).

Does Canada have PFIC rules?

No. Canada asks for Form T1135 when the cost of foreign property tops CAD 100,000 at any time in the year. How it classes an Indian fund is not settled. See the [Canada guide](/indian-mutual-funds/countries/canada-t1135-and-reporting/).

How does India tax an NRI's fund gains?

In FY 2026-27 equity funds pay 20% short term and 12.5% long term above Rs 1,25,000 a year, and the fund house deducts TDS. Other fund classes differ. See the [India tax guide](/indian-mutual-funds/india-rules/india-tax-on-fund-gains-and-dividends/).

Are Indian funds PFICs for U.S. tax?

Treating them as PFICs is common practice, not settled: no IRS ruling names Indian funds. The [PFIC guide](/indian-mutual-funds/countries/usa-pfic-and-form-8621/) explains what follows.

Official sources

Keep reading

Please read: general information only

This page gives general information and education about Indian mutual funds and about the tax and reporting rules that may apply to people who hold them. It is not investment, legal, tax, accounting or other professional advice, and it is not a substitute for advice from a qualified adviser, attorney or CPA who knows your facts. Reading it does not create a CPA-client or any other professional relationship with Prem Tax and Accounting Corp. Prem Tax and Accounting Corp is a CPA firm, not a law firm. It does not recommend, rate, sell or manage any mutual fund or other investment, and naming a fund category or product here is not a recommendation to buy, hold or sell it.

Tax and reporting rules differ by country and by person, and they change often: thresholds, rates, forms and deadlines are revised, and agencies, courts and fund companies change how they apply them. We checked the figures against the official sources named on the page on the date shown (last reviewed November 5, 2026), but we do not promise that this page is complete, current or free of errors, and we do not update it the moment a rule changes. Where the rules are unsettled we say so. Fund companies set their own policies on who may invest, and those can change without notice. Past performance does not predict future results, and investments can lose value. Examples are invented and for illustration only.

To the fullest extent the law allows, Prem Tax and Accounting Corp and its owners and staff are not responsible for any loss or decision that results from using this page. Links to government and other websites are for convenience and we do not control them.

This content is copyrighted by Prem Tax and Accounting Corp. Copying it in bulk, scraping it, or using it to train artificial intelligence systems requires our written permission.

Questions about how your Indian funds are reported on a U.S. return? Keshav Agrawal is a U.S. CPA and a Chartered Accountant (CA) from India. We prepare the U.S. side (for example Form 8621, FBAR and Form 8938) and can work alongside your adviser in India, Canada or Europe. We do not sell, rate or recommend any investment. Book a 10-minute call or send us a message.

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