Moving back to India? Viral post outlines 12-step checklist for NRIs to avoid tax shocks
One of the most critical points highlights the RNOR (Resident but Not Ordinarily Resident) window — a 2–3 year period that allows returning NRIs to restructure income and assets with significant tax benefits.
- Aug 31, 2025,
- Updated Aug 31, 2025 3:48 PM IST
A popular post on Reddit has gone viral among Non-Resident Indians (NRIs), offering a detailed 12-step checklist to avoid unexpected tax shocks when moving back to India. Shared under the thread Ask NRI, the guide breaks down financial, legal, and compliance considerations that many returning Indians overlook.
The checklist begins with “Know Your Number”, urging NRIs to carefully plan for healthcare, education, housing, and investments before relocating. It then recommends an Assets Audit to decide which foreign assets to retain and how they will be taxed in India.
One of the most critical points highlights the RNOR (Resident but Not Ordinarily Resident) window — a 2–3 year period that allows returning NRIs to restructure income and assets with significant tax benefits. The post suggests using this time to withdraw or convert 401k/IRA accounts, sell US stocks tax-free to reset cost basis, and plan property sales strategically for maximum savings.
The Reddit guide also touches on compliance details such as renewing Form W-8BEN every three years to avoid a 30% US withholding tax, correctly reporting balances in US bank accounts under Schedule FA rules, and converting NRE/FCNR deposits to RFC accounts at the right time.
Practical tips extend to spending HSA funds on Indian medical expenses, reviewing Social Security eligibility, and conducting annual compliance checks to stay aligned with India’s evolving tax regulations.
The post has resonated widely with NRIs contemplating a return, as many commenters noted that tax complexities and compliance rules are often underestimated. By breaking it into an actionable checklist, the Redditor behind the post has provided a roadmap that could help thousands of Indians transition home more smoothly.
A popular post on Reddit has gone viral among Non-Resident Indians (NRIs), offering a detailed 12-step checklist to avoid unexpected tax shocks when moving back to India. Shared under the thread Ask NRI, the guide breaks down financial, legal, and compliance considerations that many returning Indians overlook.
The checklist begins with “Know Your Number”, urging NRIs to carefully plan for healthcare, education, housing, and investments before relocating. It then recommends an Assets Audit to decide which foreign assets to retain and how they will be taxed in India.
One of the most critical points highlights the RNOR (Resident but Not Ordinarily Resident) window — a 2–3 year period that allows returning NRIs to restructure income and assets with significant tax benefits. The post suggests using this time to withdraw or convert 401k/IRA accounts, sell US stocks tax-free to reset cost basis, and plan property sales strategically for maximum savings.
The Reddit guide also touches on compliance details such as renewing Form W-8BEN every three years to avoid a 30% US withholding tax, correctly reporting balances in US bank accounts under Schedule FA rules, and converting NRE/FCNR deposits to RFC accounts at the right time.
Practical tips extend to spending HSA funds on Indian medical expenses, reviewing Social Security eligibility, and conducting annual compliance checks to stay aligned with India’s evolving tax regulations.
The post has resonated widely with NRIs contemplating a return, as many commenters noted that tax complexities and compliance rules are often underestimated. By breaking it into an actionable checklist, the Redditor behind the post has provided a roadmap that could help thousands of Indians transition home more smoothly.