Different from NRO repatriation entirely. Your foreign-held US stocks, RSU, and ESPP don't need to route through India. They stay in your US brokerage (Schwab, Fidelity, IBKR, E*Trade) and you wire proceeds directly to your Indian bank. The complexity is on the TAX side: paid in US and India, with a DTAA credit to avoid double taxation.
The two-country tax stack
- US side: US capital gains tax applies — short-term (≤1 yr) at ordinary income rates, long-term (>1 yr) at 0/15/20%. Withheld by brokerage or paid via 1099-B at year-end.
- India side: Once you're an Indian resident, your global income is taxable in India — including foreign capital gains. India LTCG on foreign stocks = 20% with indexation (or 12.5% without, post-July-2024 change).
- DTAA credit: India-US tax treaty lets you claim the US tax paid as a credit against the Indian tax. Net: you pay the HIGHER of the two, not both. Claimed via Form 67 filed BEFORE your India ITR.
Routing options — which path for the actual cash
Keep US brokerage open → wire direct to NRE
Best for most. Schwab International, IBKR, Fidelity (depending on state of last residence) allow NRI to keep account active from India. You sell, US tax withheld, wire net proceeds via SWIFT to your NRE account in India. No NRO routing needed. Wise / IBKR Global Transfer also work — often cheaper than bank wire.
Close US brokerage → liquidate all → wire net to NRO/NRE
If your US broker won't service Indian-resident accounts (some do close, Vanguard is strict). Liquidate fully, brokerage sends proceeds to your closed US bank, then wire from US bank to India. More steps but unavoidable in some cases.
Transfer in-kind to IBKR India
IBKR allows in-kind transfer of US stock positions to your IBKR India account. Cost basis preserved. You don't have to sell at the wrong time just because you moved countries. Once positions are in IBKR India, sell at your discretion and INR proceeds settle in India.
RNOR window — the biggest optimization
If you're a returning NRI (recently moved back to India), you typically have a 2-3 year RNOR window (Resident but Not Ordinarily Resident) where foreign-source income and capital gains are NOT taxable in India. Read the RNOR Playbook for the full asset-by-asset framework.
- Sell US stocks DURING RNOR window: only US tax applies. India doesn't tax foreign capital gains for RNOR.
- Sell AFTER RNOR ends (ROR status): both US tax + India 20%/12.5% LTCG with DTAA credit
- The single biggest savings: selling concentrated RSU positions during your RNOR window if you have appreciated stock
- Repatriation paperwork is the same — RNOR just affects the TAX side
The forms you actually file
- Form 67 (India): Statement of foreign income + foreign tax paid + DTAA credit claim. Filed BEFORE your Indian ITR for the year.
- Form 1099-B (US): Issued by US brokerage at year-end, used to prepare US 1040NR or 1040 depending on US tax status
- W-8BEN: Filed with US brokerage to claim treaty benefits (reduced withholding). Renew every 3 years.
- Schedule FA (India ITR): Disclose all foreign assets if you're Resident-Ordinarily-Resident. Required even if no income/gains during the year.
- NO 15CA / 15CB needed for these foreign-to-foreign or foreign-to-India wires — those forms only apply to outbound remittances from India