Moving back to India from the UAE?
Here's what changes for your global portfolio, UAE bank accounts, and tax residency.
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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, including global dividends and capital gains, 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 (RNOR). During this window, your global income is generally not taxed in India, extending your tax-free benefits.
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 (Effectively 0% tax)
- ✓Dividends from your global portfolio
- ✓Interest from UAE or offshore bank accounts
Crucial Rule: To utilize these exemptions, funds must be received in your foreign bank account first. Direct wiring to an Indian account makes them fully taxable immediately.
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 |
|---|---|---|---|
| Global 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 global brokerage accounts and holdings, foreign bank accounts, and property to the Indian tax authorities.
BROKERAGE ACCOUNTS
What happens to your UAE investment accounts?
When you move back, your tax residency changes. Many platforms restrict accounts for Indian residents or force liquidations.
Option 1: Transfer in-kind (Recommended)
Move your entire portfolio to an India-compliant platform like Paasa without selling.
Option 2: Liquidate your holdings
Sell your positions and repatriate the cash, which triggers taxable events and resets your compounding.
FEMA COMPLIANCE
What happens to your UAE bank accounts?
Foreign Bank Accounts
Section 6(4) of FEMA allows you to keep your foreign bank accounts open.
NRO and NRE Accounts
You are legally required to inform your bank and convert your existing NRO and NRE accounts to standard Resident Savings Accounts.
FAQ
Common questions returning UAE 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 global 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.
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Book a call with a Paasa advisor to map out your RNOR window, brokerage transfers, and FEMA compliance.