Moving back to India from Australia?
Here's what changes for your Superannuation, RSUs, brokerage accounts, and tax residency.
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.
Note: Moving back does not automatically end your Australian tax residency. The ATO uses a facts-and-circumstances approach, primarily the "domicile test," to determine when your residency actually ceases.
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 (RNOR). During this window, your Australian-sourced income is generally 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 selling global stocks
- ✓Eligible Superannuation withdrawals
- ✓Australian rental income
- ✓Interest from Australian bank accounts
Crucial Rule: To utilize these exemptions, funds must be received in your Australian bank account first. Direct wiring to an Indian account makes them taxable.
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 |
|---|---|---|---|
| Australian 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.
The key shift from RNOR to Ordinary Resident: your global income becomes taxable, and you need to disclose all brokerage accounts and holdings, Superannuation balances, and property to the Indian tax authorities.
BROKERAGE ACCOUNTS
What happens to your Australian brokerage accounts?
When you move back, retail platforms (like Stake, Pearler, Superhero) generally restrict non-resident accounts and may force you to liquidate your positions immediately.
Option 1: Transfer in-kind (Recommended)
Move your eligible portfolio to an India-friendly global broker like Paasa without selling, allowing you to bypass retail platform restrictions.
Option 2: Liquidate your holdings
Sell your positions and manage the cash, factoring in the ATO's deemed disposal rules and capital gains obligations.
EQUITY COMPENSATION
What happens to your RSUs and stock options?
Tax treatment depends heavily on your residency status on the vesting date, but the ATO apportions the gain based on your workdays.
1. Vesting during NRI status
Taxed as ordinary Australian employment income. Your employer withholds tax on the vesting date.
2. Vesting during RNOR
The ATO taxes the portion of the vesting value equivalent to your Australian workdays. India does not tax this foreign employment income.
3. Vesting after becoming ordinary resident
Full value is added to Indian income. Australia taxes its apportioned share; India taxes the full amount but provides a foreign tax credit.
RETIREMENT ACCOUNTS
Should you withdraw your Superannuation?
What happens to your Super depends entirely on whether you are an Australian Permanent Resident/Citizen or a Temporary Visa holder.
| Visa Status | Action on Departure | Australian Tax | Indian Tax (as Ordinary Resident) |
|---|---|---|---|
| Temporary Visa (e.g., 482) | Can claim via DASP after leaving | Taxed at 35% – 65% | Generally not applicable (taxed at source) |
| PRs & Citizens (Under 60) | Locked until preservation age | 15% on fund earnings | Earnings taxable; foreign tax credit applies |
| PRs & Citizens (Over 60) | Withdrawal eligible | Completely tax-free | Tax-free if claimed during RNOR window |
PROPERTY
What happens to your Australian property?
Australian real estate is excluded from the deemed disposal exit tax. You can continue to hold and rent it out indefinitely.
Rental income
Australia taxes non-resident rental income starting at 32.5% (no tax-free threshold). India taxes it after you become ROR but provides a foreign tax credit.
Capital gains on sale
When selling as a non-resident, the buyer must withhold 15% (FRCGW) of the gross sale price. India taxes the gain once you are a full ROR, offering a tax credit.
EXIT TAX
Will you owe the ATO Deemed Disposal Tax?
Assets bought before moving
For assets you acquired before you first became an Australian tax resident, the ATO resets your cost base. You are only taxed on gains accrued during your Australian residency.
Tax on Paper Profits
Australia treats your assets as disposed of at their current market value when you leave. You must pay tax on these "paper profits," though a 50% CGT discount applies for assets held over 12 months.
FAQ
Common questions returning Australian 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 Indian professionals
From navigating your RNOR window to generating exact Schedule FA filings, Paasa is the financial home for your transition back to India.
In-kind brokerage transfers
Move eligible accounts from Australian brokerages so you don't book taxable capital gains.
Estate Tax Protection
Direct access to Ireland-domiciled UCITS ETFs, allowing you to legally shield your investments from the 40% US Estate Tax applied to non-residents holding US equities.
Schedule FA and FSI reports
Year-end disclosures generated for every foreign holding, tailored exactly for Indian reporting requirements.
LRS-compliant remittance
Send money abroad under the USD 250,000 annual window to keep compounding your wealth globally.
RNOR-aware strategy
Built around your specific planning window so you can optimize cost-basis resets before the window closes.
You own your assets
Your holdings are held in your name at our global custodian, Interactive Brokers.
SEBI REGISTERED RIA: INA000021058
Enterprise-grade security, certified for sensitive and regulated data
Book a call with a Paasa advisor to map out your Australian exit (Superannuation strategies, deemed disposal, and Schedule FA filings).