On the US corridor the single biggest sequencing risk is an RSU vest that straddles the residency change, because the same vest can be taxed on both sides unless the landing date and the RNOR window are planned around it.
Last reviewed: September 2026 · Updated for AY 2026-27
Lock the target year of return and project your Indian day-counts for that year and the two after it. Inventory everything you hold: 401(k), IRA, HSA, RSU and ESPP positions, taxable brokerage accounts and any US property. Check whether you are eligible for Section 89A relief through Form 10EE, which defers Indian tax on the 401(k) until withdrawal.
Map the RSU vest calendar against the residency change. RNOR sequencing is what decides whether a vest is taxed twice, so the vest dates and the landing date have to be looked at together rather than separately. Decide which taxable brokerage positions to dispose of. Open or refresh your NRE, NRO and FCNR accounts so the banking side is ready before you move.
Build the Form 67 and India-US DTAA credit file so the foreign tax credit is documented rather than reconstructed later. Plan the final-year US return, including how the part-year position will be reported. Confirm the actual landing date, because that date drives the day-count that sets your Indian residential status for the year.
Land. Within 30 days redesignate NRE and FCNR accounts to RFC, notify your banks and brokers, and file the FEMA changes that follow the status change. Start the Schedule FA workpaper for the first resident year, and remember that FBAR continues to apply to your non-US accounts.
A 45-minute working session that ends with a written next-step plan.
This guide is general information published by RTA & Associates. It is not tax, legal, financial or investment advice, and it does not create a client relationship. It does not take account of your personal circumstances, and you should not act or refrain from acting on the basis of anything here.
Cross-border outcomes turn on the specific facts — your day-counts, the timing of your move, the wrappers you hold and the treaty position between the two countries. A small change in any of those can change the answer completely.
References to the law, rules or practice of countries other than India are included for general orientation only. They are not advice on the law of that country, and they should be confirmed with a qualified adviser in that jurisdiction before you act.
Tax law, exchange-control rules and treaty positions change, and they change often. This page reflects our understanding as at the date shown above. We do not undertake to update it.
To the extent permitted by law, RTA & Associates and its partners and staff accept no liability for any loss arising from reliance on this page. For advice on your own position, book a consultation.
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