Returning to India? Here’s a Simple Checklist for NRIs
Thinking of moving back to India from the US? If you’re an NRI planning your return, there’s more to think about than just booking your flights. Bank accounts, taxation, FEMA, and investment compliance—if not handled right—can lead to unnecessary tax bills and account freezes.
This quick checklist will help you transition smoothly.
What You Can Keep Abroad
Even after returning to India, you’re allowed to continue owning:
Foreign bank accounts
Overseas stocks or mutual funds
Foreign real estate
Foreign pension or insurance products
Just make sure these were acquired while you were a non-resident (NRI), or inherited from someone who was.
⚠️ Pro tip: These assets may now become taxable in India depending on your tax residency status. Plan your return date and structure accordingly.
What to Do With Your Indian Bank Accounts
NRE Account
Can be held only while you're an NRI
Must be converted to a Resident Rupee Account or Resident Foreign Currency (RFC) Account after return
Interest becomes taxable once you’re a Resident
NRO Account
Used for Indian income including rent, dividends, etc.
Continue using, but inform your bank about your new residency
FCNR Deposits
Can be held until maturity
After maturity, must be converted to RFC or Resident Account
Who You Must Inform After Returning
All your banks (to reclassify NRE/NRO/FCNR accounts)
Your stock broker or depository participant
Companies where you hold shares as an NRI
Tax Planning Tips for Returnees
If you qualify as RNOR (Resident but Not Ordinarily Resident) for up to 3 years, your global income stays tax-free
Plan large transfers or withdrawals before RNOR ends
Do not ignore redesignation—NRE interest is tax-free only while you’re NRI
When Should You Return to Maximize NRI Status?
To maintain NRI status for the current financial year, try to return after Feb 1 (Feb 2 in leap years). This keeps you under 182 days of Indian residency for that year.
Book a Free 10-Minute NRI Compliance Call
Have questions about when or how to return?
Avoid hidden tax mistakes and account complications.
Book a free 10-minute 1-on-1 with Settleline’s Cross-Border Advisory CA below.
This quick checklist will help you transition smoothly.
What You Can Keep Abroad
Even after returning to India, you’re allowed to continue owning:
Foreign bank accounts
Overseas stocks or mutual funds
Foreign real estate
Foreign pension or insurance products
Just make sure these were acquired while you were a non-resident (NRI), or inherited from someone who was.
⚠️ Pro tip: These assets may now become taxable in India depending on your tax residency status. Plan your return date and structure accordingly.
What to Do With Your Indian Bank Accounts
NRE Account
Can be held only while you're an NRI
Must be converted to a Resident Rupee Account or Resident Foreign Currency (RFC) Account after return
Interest becomes taxable once you’re a Resident
NRO Account
Used for Indian income including rent, dividends, etc.
Continue using, but inform your bank about your new residency
FCNR Deposits
Can be held until maturity
After maturity, must be converted to RFC or Resident Account
Who You Must Inform After Returning
All your banks (to reclassify NRE/NRO/FCNR accounts)
Your stock broker or depository participant
Companies where you hold shares as an NRI
Tax Planning Tips for Returnees
If you qualify as RNOR (Resident but Not Ordinarily Resident) for up to 3 years, your global income stays tax-free
Plan large transfers or withdrawals before RNOR ends
Do not ignore redesignation—NRE interest is tax-free only while you’re NRI
When Should You Return to Maximize NRI Status?
To maintain NRI status for the current financial year, try to return after Feb 1 (Feb 2 in leap years). This keeps you under 182 days of Indian residency for that year.
Book a Free 10-Minute NRI Compliance Call
Have questions about when or how to return?
Avoid hidden tax mistakes and account complications.
Book a free 10-minute 1-on-1 with Settleline’s Cross-Border Advisory CA below.
This quick checklist will help you transition smoothly.
What You Can Keep Abroad
Even after returning to India, you’re allowed to continue owning:
Foreign bank accounts
Overseas stocks or mutual funds
Foreign real estate
Foreign pension or insurance products
Just make sure these were acquired while you were a non-resident (NRI), or inherited from someone who was.
⚠️ Pro tip: These assets may now become taxable in India depending on your tax residency status. Plan your return date and structure accordingly.
What to Do With Your Indian Bank Accounts
NRE Account
Can be held only while you're an NRI
Must be converted to a Resident Rupee Account or Resident Foreign Currency (RFC) Account after return
Interest becomes taxable once you’re a Resident
NRO Account
Used for Indian income including rent, dividends, etc.
Continue using, but inform your bank about your new residency
FCNR Deposits
Can be held until maturity
After maturity, must be converted to RFC or Resident Account
Who You Must Inform After Returning
All your banks (to reclassify NRE/NRO/FCNR accounts)
Your stock broker or depository participant
Companies where you hold shares as an NRI
Tax Planning Tips for Returnees
If you qualify as RNOR (Resident but Not Ordinarily Resident) for up to 3 years, your global income stays tax-free
Plan large transfers or withdrawals before RNOR ends
Do not ignore redesignation—NRE interest is tax-free only while you’re NRI
When Should You Return to Maximize NRI Status?
To maintain NRI status for the current financial year, try to return after Feb 1 (Feb 2 in leap years). This keeps you under 182 days of Indian residency for that year.
Book a Free 10-Minute NRI Compliance Call
Have questions about when or how to return?
Avoid hidden tax mistakes and account complications.
Book a free 10-minute 1-on-1 with Settleline’s Cross-Border Advisory CA below.
This quick checklist will help you transition smoothly.
What You Can Keep Abroad
Even after returning to India, you’re allowed to continue owning:
Foreign bank accounts
Overseas stocks or mutual funds
Foreign real estate
Foreign pension or insurance products
Just make sure these were acquired while you were a non-resident (NRI), or inherited from someone who was.
⚠️ Pro tip: These assets may now become taxable in India depending on your tax residency status. Plan your return date and structure accordingly.
What to Do With Your Indian Bank Accounts
NRE Account
Can be held only while you're an NRI
Must be converted to a Resident Rupee Account or Resident Foreign Currency (RFC) Account after return
Interest becomes taxable once you’re a Resident
NRO Account
Used for Indian income including rent, dividends, etc.
Continue using, but inform your bank about your new residency
FCNR Deposits
Can be held until maturity
After maturity, must be converted to RFC or Resident Account
Who You Must Inform After Returning
All your banks (to reclassify NRE/NRO/FCNR accounts)
Your stock broker or depository participant
Companies where you hold shares as an NRI
Tax Planning Tips for Returnees
If you qualify as RNOR (Resident but Not Ordinarily Resident) for up to 3 years, your global income stays tax-free
Plan large transfers or withdrawals before RNOR ends
Do not ignore redesignation—NRE interest is tax-free only while you’re NRI
When Should You Return to Maximize NRI Status?
To maintain NRI status for the current financial year, try to return after Feb 1 (Feb 2 in leap years). This keeps you under 182 days of Indian residency for that year.
Book a Free 10-Minute NRI Compliance Call
Have questions about when or how to return?
Avoid hidden tax mistakes and account complications.
Book a free 10-minute 1-on-1 with Settleline’s Cross-Border Advisory CA below.
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