1. Your residential status
Most returning NRIs are RNOR (resident but not ordinarily resident) for a period — for example if they were non-resident in 9 of the previous 10 years, or in India for 729 days or less in the previous 7 years. RNORs are generally taxed only on Indian income. Check yours with the residential status calculator.
2. Bank accounts
- Redesignate NRE and NRO accounts as resident accounts once you become resident; foreign-currency balances can move to an RFC account.
- NRE and FCNR interest is tax-free only while you’re non-resident — see NRE vs NRO vs FCNR.
3. US retirement accounts and shares
- 401(k)s, IRAs and US brokerage accounts can usually be kept; timing withdrawals and sales during your RNOR years can reduce Indian tax.
- Once you’re ordinarily resident, India taxes worldwide income, with credit for US tax under the treaty — see India–US DTAA.
- Non-US persons can face US estate tax on US-situs assets above a small exemption — review holdings with a US adviser.
4. Filings
- India: your first return as a resident; once ordinarily resident, report foreign assets in Schedule FA.
- US: a final-year US return for the year you leave; whether you file as a resident or nonresident depends on your US status that year.
- Running a US company? See US compliance calendar and consider whether to bring the holding company home.
Frequently asked questions
Do I pay Indian tax on US income after moving back?
While you're RNOR — usually for the first few years if you were abroad long enough — India generally taxes only Indian income. Once you become ordinarily resident, worldwide income is taxable in India with credit for US tax.
What happens to my NRE account when I return to India?
It should be redesignated as a resident account (or foreign currency moved to an RFC account) once you become resident; NRE interest stops being tax-free from then.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.