If you’re an NRI who owns property in the US and is thinking of selling after moving back, FIRPTA is an important concept that you must understand and keep in mind while planning the sale. 1. What is FIRPTA? FIRPTA (Foreign Investment in Real Property Tax Act) applies when a foreign person (including NRIs) sells their US real estate, and the buyer is required to withhold a certain amount of money to send to the IRS. Think of it as similar to when NRIs sell Indian property; th

Many NRIs and OCIs moving back to India from the US usually have a sizable portion of RSUs and ESOPs within their portfolios that need to be planned strategically when coming back. RSUs and ESOPs are taxed differently depending on when the vesting/exercising or selling happens and on your Indian residential status, which is why it’s important to keep a few things in mind when planning your return. RSUs (Restricted Stock Units) The biggest disadvantage and risk you have with R

One of the most common questions we get from returning NRIs is: "Can I keep my brokerage account after I move back?" The short answer is yes, but there are a few things to keep in mind. Can you keep the account? You can usually keep and trade accounts with Schwab, Fidelity, IBKR (rules may differ for each brokerage). You cannot continue with brokers like Robinhood after returning to India, as you need to be a legal resident of the US. Products and services provided by US brok

Account Holds Currency Repatriable? Interest taxed? On return NRO Indian income INR Up to $1M/FY Yes (30% TDS) Convert to resident account NRE Foreign Income INR Fully Tax-free (as NRI) Convert to resident account FCNR Foreign income Foreign Fully Tax-free (NRI/RNOR) Continue till maturity, then convert RFC Foreign income Foreign Fully Tax-free (RNOR only) Open only after return NRI bank accounts may seem like a shuffle of acronyms with varying rules for taxes, repatriation a

Most NRIs assume that selling Indian mutual funds automatically attracts Indian capital gains tax. That’s not always true. Under several of India’s DTAAs, capital gains from Indian mutual funds can be taxable only in your country of residence, not in India. If you’re an NRI in Singapore or the UAE, capital gains aren’t taxed there. Thanks to DTAA rules, redeeming Indian mutual funds can end up being tax-free (completely legally). How does this work? Most Indian tax treaties s

PFIC, or Passive Foreign Investment Company, is a US tax rule that applies to most non-US pooled investments. For US-based NRIs and OCIs, it quietly becomes one of the biggest constraints on how India fits into a portfolio at all. Most people meet it the hard way, after they have already invested. What's actually covered under PFIC, and what isn't Usually PFIC Generally Not PFIC Indian mutual funds Direct Indian equities Indian ETFs Portfolio Management Services (PMS) Most AI