Chasing that elusive US Green Card? It may be of no use to you after all!

Indians who are green card holders or were always excited to have one may no longer have the benefits.

Indians holding a US passport have an advantage of saving on tax, concealing assets and investing in the country.

But, as India and the US have decided to exchange financial information about citizens, the joyride may end soon.

The government has signed a US Foreign Account Tax Compliance Act (FATCA) under which people will have to declare all assets and failing to do so can attract penalties and even jail.

With this move, many are thinking of giving up their American citizenship.

"Until now, many Indians who were American citizens would seldom reveal their Indian income and investments in the US and vice versa. However, now when that information is shared by India in the US, it could attract a lot of penalty and even some other punitive action, this has led to many NRIs (non-resident Indians) moving back to India," Lloyd Pinto, director, Grant Thornton India, told ET.

Experts say that people having green card will either have to declare assets, restructure holdings or come back to Indian citizenship.

Now, sending gifts and transferring assets will no longer be easy as it will attract stamp duty and an Indian tax also.

Meanwhile, if you though renouncing citizenship is easy, it ain’t.

You need clearance from revenue department and address formalities.

(Image: Indiatimes)