Planning to return to India? See your tax exposure.
Project your residency trajectory, RNOR window, year-by-year Indian tax, and the savings from planning your return strategically.
How this works
We compute your residency status for each of the next four financial years using Section 6 of the Income Tax Act plus the Section 6(6) RNOR tests. During RNOR, foreign income is not taxable in India (unless received here). After RNOR, global income is taxable in India, with DTAA credit against tax paid abroad.
Tax on Indian-source income uses the NRI rate card: NRE interest tax-free, NRO interest 30%, rental 30%, dividends 20%, business 30% (all plus 4% cess). Ordinary-Resident foreign income uses the new-regime slab and applies a blended DTAA credit based on your country's typical effective rate.
Sources & References
Frequently Asked Questions
- What is RNOR and who qualifies?
- Resident but Not Ordinarily Resident. You qualify if non-resident in 9 of the 10 preceding FYs, OR present in India ≤ 729 days in the preceding 7 FYs. Most returning NRIs who've been abroad 5+ years qualify.
- Can I choose to be RNOR?
- No — it's automatic based on the rules. But you CAN plan your return date to maximise the RNOR window.
- What happens to my NRE account after return?
- Must be re-designated to Resident OR converted to RFC (Resident Foreign Currency). RFC preserves the foreign-currency balance but interest is taxable like a resident account.
- Do I need to disclose foreign assets?
- Yes, once you become Ordinary Resident — Schedule FA is mandatory. Non-disclosure penalties under the Black Money Act are up to 10x + prosecution.
- Can I extend RNOR?
- No. Status is rule-based. The window is typically 2-3 FYs depending on when you return and your prior residency pattern.
- Do foreign stocks lose US tax benefits when I become resident?
- US citizens and residents report globally regardless of Indian residency. India now also taxes global income post-RNOR — DTAA prevents double tax via foreign tax credit on Form 67.
- What about my US 401(k)?
- You can keep it. Distributions follow US rules; India may tax distributions after RNOR ends (Article 19/20 of India-US DTAA). Complex — consult a specialist.
- What about US Social Security?
- India-US Totalization Agreement avoids double social-security tax. Benefits received are taxable in the resident country.