Managing Your US Brokerage Account After Returning to India
- Jul 4
- 3 min read
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 brokerages depend on your current country of legal residence, so product availability may change once you become an Indian resident.
After moving, these accounts need to be converted into international/NRI accounts to support your Indian address (best to double-check with your US brokerage for specific instructions regarding your return situation).
Compliance step: You’ll need to submit Form W-8BEN to your broker to confirm NRI status, as this ensures the correct tax treaty rates are applied on dividends and gains instead of the default 30% withholding tax.
There will be funding restrictions in India
You cannot send new money from India to trade futures or on margin, as per the RBI’s LRS, which expressly prohibits this.
However, you can continue trading with existing funds already in your US account. You also have the option to add up to $250,000 per year from India under the Liberalised Remittance Scheme (LRS).
Tax treatment in India and the US
India - Once you’re an Indian resident (ROR), global income is taxable. Dividends, interest, or capital gains from your US brokerage must be disclosed in your Indian tax return. Key points to keep in mind for capital gains -
Indian listed equities: LTCG period = 1 year; taxed at 12.5% (above 1.25 lakh).
US/foreign equities (including RSUs in a US brokerage): LTCG period = 2 years; if sold before 2 years, taxed as STCG at your income slab (up to 30–37%). After 2 years, LTCG = 12.5%.
In the US, your brokerage income may still be taxable even after you move, depending on your status:
US citizens and green card holders remain liable for US tax on worldwide income.
Non-residents for US tax purposes (NRAs) are generally taxed only on US-sourced income, such as dividends. Note that capital gains on US securities are usually not taxed by the US for NRAs, which is a useful distinction to understand.
The RNOR window
During your RNOR period, India will not tax your foreign income unless it is received in India. Income tied to services you perform while living in India can still be taxable, so that line matters.
This gives you a 2-3 year window to
Continue using your US brokerage without immediate Indian taxation.
Restructure or repatriate funds in a tax-efficient way (shifting to Irish ETFs)
Plan a smoother shift of funds before becoming a full ROR (Resident & Ordinarily Resident).
A wider point worth pausing on
It is also worth stepping back and asking what actually serves your financial goals here. Many people chase the dollar figure, but that may not make sense if you are returning to India for good and the bulk of your portfolio still sits in the US. With the current political environment and the layers of cross-border taxation involved, it can be worth looking into US-equivalent alternatives such as GIFT City funds, UCITS, and Irish-domiciled ETFs, which we will cover in the next post.
