Moving back to India?
Here's what changes for your investments, taxes, and assets abroad.
ISO Certified
SIPC Insured
SEBI RIATax residency
When do you become an Indian tax resident again?
Your residency status is determined by days spent in India.
Either of these makes you a tax resident
Rule 1
182 days or morein India during one financial year.
Rule 2
60 days or more this yearand365 days or more across the previous 4
Once you're a resident, your global income becomes taxable in India. Your move date relative to the financial year can shift this by a full year.
Transitional status
What is RNOR, and why does it matter?
Between NRI and ordinary Indian resident, there's a transitional status called Resident but Not Ordinarily Resident. During this window, your foreign income is not taxed in India.
You qualify if
- 1You were an NRI for 9 of the previous 10 years, or
- 2You spent fewer than 730 days in India over the previous 7 years.
RNOR window typically lasts
2 – 3 years
Outside Indian tax during RNOR
- ✓Capital gains from foreign stocks
- ✓Dividends from foreign ETFs
- ✓Foreign rental income
- ✓Most pension distributions
Filing requirements
Disclosures and filings at each stage
Your filing obligations are limited during RNOR — and ramp up sharply once you become an Ordinary Resident.
| Requirement | NRI | RNOR | Ordinary Resident |
|---|---|---|---|
| Foreign income taxable in India | No | No | Yes |
| Schedule FA (foreign asset disclosure) | No | No | Yes |
| Schedule FSI (foreign source income) | No | No | Yes |
| Form 67 (foreign tax credit claim) | No | No* | Only if claiming foreign tax credit |
| Advance tax on foreign income | No | No | Yes |
| Black Money Act penalties for non-disclosure | No | No | Yes |
* Form 67 may apply to an RNOR in case of foreign income that becomes taxable in India. E.g., income from a business controlled in or a profession set up in India, where foreign tax has been paid.
The key shift from RNOR to Ordinary Resident: your foreign income becomes taxable, and you need to disclose foreign assets to the Indian tax authorities.
Brokerage accounts
What happens to your foreign stocks and brokerage accounts?
Most foreign brokerages close or restrict accounts when you become an Indian resident. You have two options.
Transfer via ACATS
Move holdings to an India-friendly global broker without booking capital gains.
Liquidate your holdings
Sell your positions and pay tax on the gains realized.
Equity compensation
What happens to your RSUs and stock options?
Tax treatment depends on your residency status on the vesting date, not the grant date.
Vesting during NRI status
Taxed in the source country only.
Vesting during RNOR
Taxed in the source country only. No Indian tax on vesting.*
Vesting after becoming ordinary resident
Full market value added to Indian income at slab rate.
Retirement accounts
What happens to your foreign retirement accounts?
Foreign retirement accounts stay where they are. What changes is how distributions are taxed once you're back.
| Account | During RNOR | After becoming Ordinary Resident |
|---|---|---|
| US 401(k) / IRA | Not taxed in India | Taxed in India; US tax credited under DTAA |
| Singapore CPF | Generally not taxed | Treatment depends on withdrawal type |
| UK pension | Not taxed in India | Regular pension income taxable in India |
| UAE gratuity | Not taxed if received as NRI | Taxable if received after residency |
Property
What happens to your foreign property?
You can continue to own property abroad after returning. There's no requirement to sell.
Disclosure
Foreign property must be declared in Schedule FA only once you become an Ordinary Resident.
Rental income
Not taxed in India during RNOR. Taxable once you become an Ordinary Resident.*
Capital gains on sale
Not taxed in India during RNOR. Taxable when you become a full resident (ROR).
Exit tax
Will you owe an exit tax when you leave?
| Country | Exit tax? | Detail |
|---|---|---|
| United States | Limited | Only for covered expatriates giving up citizenship or a long-held green card. Most NRIs are not affected. |
| Germany | Yes | On certain corporate shareholdings and large fund positions. |
| Canada | Yes | Deemed disposition on departure. |
| Australia | Yes | Deemed disposition on certain assets. |
| UK | No | — |
| UAE | No | — |
| Singapore | No | — |
FAQ
Common questions returning NRIs ask
Country guides
Guides for where you're returning from
Each guide breaks down brokerage, retirement, tax, and exit considerations for your origin country.
How Paasa helps
Built for returning NRIs
From the RNOR window to year-end Schedule FA filings, Paasa is the financial home for your transition.
In-kind brokerage transfers
Move accounts via ACATS so you don't book capital gains while transitioning brokers.
Schedule FA and FSI reports
Year-end disclosures generated for every foreign holding, ready for your ITR.
LRS-compliant remittance
Send money abroad under RBI's USD 250,000 annual window to keep investing globally.
UCITS ETF access
Estate-tax-safe global investing through funds domiciled outside the US.
RNOR-aware tax reports
Built around your specific planning window so you can act before it closes.
You own your assets
Your holdings are held in your name at our global custodian, Interactive Brokers.
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Book a call with a Paasa advisor to map out your RNOR window, brokerage transfers, and tax disclosures.