Heading Back to India? Here Are 9 Tips Every NRI Should Know

Get ready for a smooth transition with these handy tips for returning NRIs
min read
June 5, 2024

Ah, the familiar scent of spices, the warmth of family gatherings, and the vibrant chaos of Indian streets – these memories often pull NRIs (Non-Resident Indians) back home.

Recently, more NRIs are choosing India for their retirement. This "homecoming," as it's often called, is driven by a mix of emotions and practicalities.  Amidst the excitement, navigating the financial aspects of returning can be daunting, as finances are often the top concern.

This blog provides nine essential tips to ensure a smooth financial transition, covering everything from understanding your tax status to planning your investments, and making your homecoming financially secure.

Financial Tips for Returning NRIs

1. Evaluate Your Finances

Start by assessing your current financial situation. Review your savings, investments, and debts. Knowing where you stand financially will help you make informed decisions as you plan your move back to India.

2. Manage Currency Exchange

Planning your currency exchanges is crucial to get the best rates. Consider timing and market trends to maximize your returns. Exchange rates can fluctuate, so keeping an eye on the market can save you money in the long run.

3. Transfer Your Funds

Use reliable transfer services like Vance that have low fees to transfer your funds to India. It's also essential to understand the tax implications and reporting requirements for these transfers. This knowledge will help you avoid any unexpected issues with tax authorities.

4. Update Your Bank Accounts

Convert your NRE/NRO accounts to resident savings accounts. This process involves paperwork such as updating your KYC (Know Your Customer) details, providing proof of your change in residency status, and submitting necessary forms to your bank. Typically, you will need:

  • Proof of Address
  • Proof of Identity
  • Proof of Residence Change
  • Account Conversion Form

So understanding the required documentation will help you streamline the transition.

5. Review Tax Obligations

Understand your tax liabilities in India. Seek professional advice on double taxation agreements to avoid paying taxes twice on the same income. 

It's important to know whether you should file an income tax return in India as an NRI.

6. Adjust Investments

Rebalance your investment portfolio to align with Indian markets. Consider local investment opportunities and risks. 

This adjustment will ensure your investments continue to grow in your new location.

7. Plan for Retirement

  • Ensure your retirement plans are adaptable to your new location. 
  • Consider pension transfers and local retirement schemes to make the most of your retirement savings.

8. Insurance Needs

Update or purchase health, life, and property insurance in India. Understanding the coverage and benefits of these insurance policies will help protect you and your family from unforeseen events.

9. Financial Advisors

Seek advice from a financial advisor familiar with NRI issues. A professional can help you plan a strategy for financial stability and growth in India, ensuring a secure financial future.

Additional Tips for a Smooth Transition

Housing Arrangements

If you don't already have a home in India, research housing options and market trends. Consider renting vs. buying and the legal aspects involved. 

Renting can offer flexibility, while buying may be a better long-term investment.

Legal Documentation

Update your legal documents, including visas and work permits. Ensure all personal documents are valid and in order. This preparation will save you time and hassle once you're in India.

Cultural Adjustment

Prepare for cultural differences and social norms. Engage in community activities to ease the transition. Understanding the local culture will help you integrate more smoothly into Indian society.

Networking and Community

Connect with local expatriate and NRI communities. Join social and professional networks for support. These connections can provide valuable advice and support as you settle back into life in India.

Moving Logistics

Plan your move well in advance. Hire reliable moving services and manage customs requirements. This planning will help ensure a smooth transition of your belongings to your new home.


Returning to India is a significant step that requires careful planning and preparation, especially when it comes to your finances. By following these tips, you'll ensure a smoother transition and a more secure future.

Remember, preparation is key to making your move back home as seamless as possible. Welcome back to India, and here's to a successful new chapter!

With these steps, you can confidently return to India, knowing you've covered all your bases. Whether you're planning your finances, adjusting your investments, or handling legal documentation, this guide is here to help you every step of the way.


Q1. What are some essential income tax tips for NRIs returning to India?

1. Update Your Status: Notify your bank and financial institutions about your change in residential status.

2. Understand Residency Rules: Familiarize yourself with the tax residency rules in India.

3. Claim Exemptions: Utilize available exemptions under the Income Tax Act.

4. File Returns Promptly: Ensure timely filing of your income tax returns in India.

Q2. What are the key considerations for NRIs regarding their tax obligations upon returning to India?

1. Tax Residency Status: Determine your tax residency status based on your stay in India.

2. Global Income: Understand the tax implications on your global income.

3. Double Taxation Avoidance Agreements (DTAA): Leverage DTAA benefits to avoid double taxation.

4. Document Requirements: Keep all necessary documentation ready for tax filings.

Q3. How does the duration of stay in India affect the tax residency status of returning NRIs?

The duration of stay in India significantly impacts your tax residency status. If you stay in India for 182 days or more in a financial year, you will be considered a resident for tax purposes. NRIs should track their stay to understand their tax obligations better.

Q4. What are the tax implications for returning NRIs on their global income?

For returning NRIs classified as residents, their global income becomes taxable in India. However, you can benefit from DTAA to avoid double taxation. Consulting with a tax advisor can help you manage these implications effectively.

Q5. Are there any tax benefits or exemptions available to returning NRIs?

Yes, returning NRIs can avail of several tax benefits and exemptions, such as:

1. Exemption on Foreign Income: Income earned abroad before returning to India is not taxable.

2. DTAA Benefits: Avoids double taxation on income.

3. Specific Exemptions: Interest on NRE accounts remains tax-free even after return, under certain conditions.

Rupali enjoys writing about everything related to money (in India and around the world). A MICA graduate in Communications, she has over seven years of experience in content creation and communication strategy for various user touchpoints, from CRM to UX for apps and websites, especially in fintech and healthcare. Outside of work, you'll find her binging on true crime documentaries or cooking up a storm.

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