Returning to India

Moving back to India after living overseas brings excitement, opportunity, and nostalgia but it also triggers tax, regulatory, banking, and financial compliance responsibilities that are very different from those applicable to NRIs.

Whether the return is permanent, temporary, or uncertain, key decisions made during this transition can significantly affect:

  • Your tax liability in India
  • Treatment of global income and assets
  • Permissibility of foreign bank accounts and investments
  • FEMA, RBI & Indian tax disclosures

FinPracto simplifies your homecoming – financially and legally. From tax planning to documentation, from bank account conversion to foreign asset reporting, we ensure a smooth and compliant shift to resident status.


What Makes Returning to India Complex?

Most individuals returning after years abroad are unsure about questions like:

  • Will my salary or rental income earned abroad become taxable in India?
  • Can I continue holding property or bank accounts overseas?
  • How should I convert NRE / NRO / FCNR deposits?
  • Do I need to disclose global assets in the Indian ITR?
  • When should I return to minimise taxes?

Our transition specialists guide you step-by-step so you don’t face penalties or unexpected tax outflows.

FinPracto’s End-to-End Support for Individuals Returning to India

We provide complete tax, FEMA, banking, and financial assistance to ensure a smooth and compliant transition back to India.

1. Residential Status Determination

We analyse days of stay, global movement pattern and tax implications to determine whether you qualify as:

  • NRI
  • RNOR (Resident but Not Ordinarily Resident)
  • ROR (Resident & Ordinarily Resident)

Your residential status determines whether only Indian income is taxed or global income becomes taxable.

2. Conversion, Closure & Re-designation of Bank Accounts

We assist in:

  • Converting NRE / NRO accounts to resident accounts
  • Converting FCNR deposits to RFC (Resident Foreign Currency) or INR accounts
  • Updating KYC and documentation across banks and financial institutions

3. Managing Overseas Assets & Investments

Whether you hold bank accounts, properties, stocks, retirement plans, 401(k), ISAs, mutual funds, RSUs or ESOPs abroad, we guide you on:

  • Legally continuing ownership under FEMA
  • Bringing proceeds to India with correct documentation
  • Tax-efficient repatriation and reinvestment

4. Taxation on Global Income & Double Taxation Relief

We ensure you do not pay tax twice on the same income by:

  • Applying DTAA (Double Taxation Avoidance Agreement) benefits
  • Claiming Foreign Tax Credit (FTC) through Form 67
  • Choosing the right timing for return to minimise taxes

5. FEMA & RBI Compliance Assistance

We facilitate:

  • Permissions required to retain overseas assets after return
  • Approvals relating to reinvestment of foreign sale proceeds
  • Regulatory compliance while transferring wealth back to India

6. Wealth, Investment & Retirement Planning

We create a personalised financial roadmap for:

  • Deployment of foreign funds in India
  • Continuing or encashing overseas retirement schemes (401k, pensions, superannuation etc.)
  • Tax-efficient investment across asset classes for long-term residency in India

7. Income Tax Return Filing & Disclosures

Complete support with:

  • Filing ITR after return to India
  • Reporting foreign assets (Schedule FA) when applicable
  • PAN application if not already allotted
  • Claiming relevant deductions, exemptions and rebates

Who We Assist

  • NRIs returning permanently or temporarily
  • OCIs and ex-NRIs relocating to India
  • Individuals moving to India for employment or business
  • Retirees relocating after decades abroad

Why FinPracto?

  • Specialised in NRI & cross-border taxation
  • Seamless coordination for banking, taxation, and FEMA compliance
  • One-stop advisory covering India + overseas jurisdiction impact
  • Trusted by global professionals, entrepreneurs, and families

Your Transition, Made Hassle-Free

Returning home should feel warm — not overwhelming.

FinPracto helps you manage the compliance side so you can focus on settling in.

Schedule a Consultation – Start Planning Your Return to India Today

FAQs

Your tax liability depends on your residential status for that financial year. If you qualify as NRI or RNOR, only income earned in India is taxable.
If you become a Resident & Ordinarily Resident (ROR), your global income becomes taxable in India.
We assist in determining the most beneficial status and tax planning accordingly.

Yes, but only after following FEMA and RBI regulations. Some assets can be continued legally, while some require repatriation or specific permissions.
We guide on how to retain or liquidate overseas assets without violating regulations.

Upon change of residency status, these accounts must be:

· Converted to Resident Accounts
· Or, in the case of FCNR deposits, moved to RFC (Resident Foreign Currency) accounts

We take care of documentation and coordination with banks.

The tax year in India runs April to March. Choosing the right month of return can help ensure:

· Lower taxable income in India
· Continued eligibility for RNOR benefits
· Better control on foreign income taxation

FinPracto provides personalised pre-return tax planning.

Foreign asset disclosure depends on your residential status.

Residents (ROR) must disclose global assets in their ITR (Schedule FA).
NRIs & RNORs are not required to disclose foreign assets.

We advise on the correct disclosure approach to avoid penalties.

Yes, many retirement accounts (e.g., 401(k), pension funds, superannuation) can be continued legally.
However, withdrawal and taxation rules differ across countries.
We advise on withdrawal vs continuation based on tax benefits and financial goals.

If you earn taxable income in India after return, obtaining a PAN (Permanent Account Number) is mandatory.
Our team assists in PAN application and KYC completion.

The sale proceeds may:

· Be taxable in the country where the property is located
· And may also trigger tax reporting in India depending on residential status

We support in DTAA planning and Form 67 filing to claim Foreign Tax Credit (FTC) and avoid double taxation.

You must file an ITR if you:

· Earn income in India, or
· Own foreign assets as a Resident, or
· Wish to claim refunds or Foreign Tax Credit

FinPracto provides end-to-end ITR filing support for returning residents.

We provide 360° support, including:

· Tax planning & residential status optimisation
· Conversion of NRE/NRO/FCNR accounts
· FEMA & RBI compliance
· Foreign asset reporting & FTC/DTAA planning
· Repatriation of funds & wealth transfer
· ITR filing after return

Our goal is to ensure a seamless and penalty-free transition to resident status.

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