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.

1. 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.

2. 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

3. 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

4. Tax Planning Tips for Returnees

If you qualify as RNOR (Resident but Not Ordinarily Resident) for up to 2-3 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

5. When Should You Return to Maximize NRI Status?

• Spread international transfers across family members

• Use UAE mortgages to reduce how much you need to send from abroad

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.

Planning your return to India? Get expert guidance on tax optimization and compliance. Book a free 15 minute consultation call with Settleline's Cross-Border experts.