Start with your tax residency, because it decides how your foreign income is taxed; then redesignate your Indian accounts and tell your banks, fund houses and brokers.
After a long stay abroad, many returning NRIs first qualify as resident but not ordinarily resident (RNOR) for a period. During that time, most income earned and received outside India is not taxed in India. That window is useful for planning when to sell foreign assets or draw on foreign accounts, so work out your status before you move money.
On the Indian side:
- NRE and NRO accounts must be converted to resident accounts once you return. A resident foreign currency (RFC) account can hold foreign currency you bring back.
- Update your residential status with mutual fund houses, your depository and your broker.
On the foreign side:
- A 401(k) can usually stay where it is. Relief from being taxed twice on it depends on the rules of both countries.
- Once you become ordinarily resident, foreign assets must be reported in your Indian return each year, and missing them carries heavy penalties.
Our guide for NRIs returning to India has a 90-day checklist. Cross-border tax is specialist work, so involve a chartered accountant who handles it.
Your own answer depends on your years abroad, your accounts and your plans for them. If you want someone to look at your numbers, you can book a free call.