---
name: india-nri-return
description: Checklist for NRIs moving back to India - residential status (RNOR), bank accounts, foreign income and assets, and what to do with retirement accounts abroad. Use when the user says "moving back to India", "returning NRI", "RNOR", "NRE account", or asks about money in Canada/US/UK after returning.
---

# Moving back to India (returning NRI)

Ask first: which country they're leaving, expected return date, years spent abroad, and what they own there (bank, retirement accounts, stocks, property).

## 1. Residential status
- Resident if in India 182+ days in the tax year (other tests exist for people with high Indian income).
- Returning residents are often **RNOR** (resident but not ordinarily resident) for the first 2 to 3 years: they were non-resident in 9 of the previous 10 years, OR in India 729 days or less in the previous 7 years.
- While RNOR, income earned and received abroad is generally not taxed in India. Plan foreign sales/withdrawals for this window.
- After that they become ROR: worldwide income is taxable in India and foreign assets must be reported in Schedule FA of the return. Missing Schedule FA can mean heavy penalties under the black money law.

## 2. Bank accounts in India
- Tell banks about the change. NRE/NRO accounts must be redesignated as resident accounts.
- NRE balances can move to an RFC (Resident Foreign Currency) account to keep foreign currency.
- FCNR deposits can run to maturity.
- Update KYC and residential status with brokers and mutual funds (NRI demat → resident demat).

## 3. Accounts abroad
- Usually keep foreign bank and brokerage accounts open; they're allowed under LRS rules for returning residents.
- Retirement accounts (Canada RRSP/TFSA, US 401(k)/IRA, UK pension): tax treatment differs by country and the tax treaty (DTAA). Example: a Canadian TFSA is tax-free in Canada but India doesn't recognise it, so its income can become taxable once ROR. Suggest deciding before RNOR ends.
- Tell the foreign tax authority you've left (e.g. Canada: departure return, possible departure tax on investments).
- Claim foreign tax credit (Form 67) where tax is paid in both countries.

## 4. Other
- Aadhaar, PAN status update, health insurance (gap cover), driving licence, transfer of residence for baggage customs.

Always end with: rules depend on exact dates and amounts. Get a CA in India and a tax professional in the other country before moving large sums.