Question 1

What is RNOR and why does it matter when moving back?

Accepted Answer

Resident but Not Ordinarily Resident (RNOR) is a transitional Indian tax status that lasts up to 2-3 years after returning. During RNOR, your foreign income is NOT taxable in India — only Indian-source income is. Time your return so you maximise the RNOR window: the more days abroad in the prior 7 years, the longer RNOR lasts. Use the 182-day counter to plan.

Question 2

Do I need to redesignate my NRE / NRO accounts when I move back?

Accepted Answer

Yes, within a reasonable time after returning (usually 90 days). NRE accounts must be converted to Resident Rupee (savings) accounts or RFC (Resident Foreign Currency) accounts. NRO accounts convert to ordinary resident accounts. Failure to redesignate is a FEMA violation. Contact the bank in writing once your residency status changes.

Question 3

How much money can I bring back to India when returning?

Accepted Answer

There is no upper limit on bringing your own foreign assets back to India — but how you bring them matters. Closing balances from NRE accounts can be freely transferred. Foreign-held investments (US 401k, brokerage, savings) can be liquidated and remitted, with proper documentation for source-of-funds. NRO repatriation is capped at $1M/financial year and requires 15CA/15CB filings.

Question 4

What happens to my US 401k / IRA when I move back to India?

Accepted Answer

You can leave 401k/IRA invested in the US — they remain valid retirement accounts. Withdrawals before 59.5 trigger 10% US penalty + ordinary income tax. After moving back, withdrawals are taxed as US-source income; you may also owe Indian tax once RNOR ends. India-US DTAA provides relief from double taxation. Most CPAs recommend keeping 401k in the US until 59.5+ unless you need the funds.

Moving back to India · in 4 steps

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