60-day financial checklist before returning to India
- Jul 3
- 3 min read
A return to India has a hundred moving parts, and the financial ones have a habit of slipping until the last fortnight, when there is no longer time to do them well. This is the list we wish every returning NRI had on the fridge about two months out. None of it is complicated, but almost all of it goes smoother when started early and from the right side of the ocean.
Understand your RNOR window before you land
From the date of return to various action items that you wish to do to save taxes, this 2-3 year golden window is the epicenter to planning (in most cases). Most of your foreign income stays tax-free in India during this period, and if paired with the no-resident status of the country you're leaving, it becomes the secret leverage for returning NRIs. Any drawdowns or repatriations should ideally happen here - but the planning needs to start as soon as you can, not after you've landed.
Decide what you're doing with your retirement accounts
Rollover, leave it, or withdraw (staggered or lump sum) - each has different tax implications on both sides. The decision depends on your need for income, your life situation, future goals, and how you want to manage the tax drag over time.
One trap worth knowing: a US retirement account left untouched until death is a US-situs asset, so it can be hit by estate tax (up to 40%) and then income tax on the withdrawal. This combination can climb toward 60-70% in taxes in the worst case. Understand how residency and taxation on your specific instrument work before you act.
Decide what you're doing with your house
Selling, renting, or leaving? From what I’ve seen, in most cases, selling is the better choice, but it’s best to evaluate the decision depending on your case. Each path has a different financial and tax outcome, and the decision you make here affects how much liquidity you have when you land. Lead time matters - brokers, legal work, and property managers all take longer than you expect. So set the expectation with respect to turnaround time.
Check if your brokerage will support you as a non-resident
Some platforms will not support your account the moment your residency changes or you update your address to India. Policies vary, and they don't always tell you proactively, so it’s best to check with your brokerage partner and get clarity in writing before you return.
Understand your country's exit tax rules before you sell
It’s important to understand and know how the exit tax rules work in the country you're leaving before you move, e.g., Canada’s deemed disposition rule (meaning a tax event, even if you haven't sold anything) is tied to residency, vs the US exit tax rule, which is tied to citizenship or long-term residency (GC). Selling before vs after the move can be a meaningful difference in what you owe. Speak to your local tax accountants to understand the exit tax formalities, if applicable.
Decide what you're doing with your belongings
Car, electronics, furniture. The ones that make you deliberate are worth evaluating properly, group them and run a quick cost-benefit analysis on shipping vs replacing. Bring the rest along. If selling, list early (buyers lowball when they know you're leaving). If shipping, get cargo quotes early and factor in customs duties on the India side.
Transfer 2-3 months of expenses to your Indian account
Your money should reach before you do, enough to support you for the next 3-4 months. Transfer into your NRE account; it's repatriable, and the funds stay in INR. Wire transfers have fees, so batch them rather than doing multiple small ones. If you don't have a job lined up or have school admissions and deposits coming up, make it 4-6 months so you have sufficient liquidity.
Close loose ends on overseas accounts and cards
Closing a bank account remotely is genuinely painful, so sort this while you're still there. Don't hold onto accounts you don't actually need; close what's not serving a purpose. But keep one active for utility: pension inflows, tax refunds, or future remittances. Before closing anything, check for subscriptions or direct debits still running, redeem credit card points, and clear any pending transactions.
Get your paperwork in order
Self-email medical records and immigration documents so you're not hunting for them later. And if you're keeping assets there, make a will if you haven't.
Be present - more is less :)
Take the photos, have the dinners, and say the goodbyes properly. The financial checklist matters, but so does closing this chapter well :)
