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Returning to India from the US on an H1B? Here Is Your Tax Playbook.
H-1B holders planning the move back to India remain US tax residents on green-card or substantial-presence days, while becoming Indian residents the year their physical presence crosses 182. India's two-to-three-year RNOR window shelters US salary, RSU vesting and 401(k) draws if sequenced correctly. India-US DTAA credit prevents true double tax.
Last reviewed: June 2026 · Updated for AY 2026-27
What H1B Returning NRIs ask first.
The same four pillars (tax, FEMA, property, return) apply everywhere — but the order changes by corridor. Here's where H1B Returning cases usually start.
- 01RNOR + DTAA combined strategy
- 02Dual-residency year returns
- 03401(k)/IRA and India tax (Section 89A, Form 10EE)
- 04RSU RNOR 12-month window
- 05H1B return decision matrix 2026
How we help H1B Returning NRIs.
Book a focused advisory call tailored to your corridor.
- 01H1B return decision call
- 02401(k) / RSU RNOR sequencing review
- 03Section 89A / Form 10EE filing
Deep reads for H1B Returning NRIs.
Step-by-step explainers written for the Gulf corridor.
Got a H1B Returning-specific question?
Mention the country and life stage — we'll send back a corridor-specific reply.
Answered, candidly.
- Does leaving the US on H1B automatically make me Indian resident?
- No. Indian residency follows day-count tests. The landing date can shift an entire tax year, so we model it before tickets are booked.
- Should I exercise my RSUs before or after the move?
- It depends on vesting cliff dates, US withholding and your RNOR window. RNOR-year vests typically attract no Indian tax on the US-source portion — but cross-border sourcing rules apply pro-rata. We model it line-by-line.
- Can I keep my 401(k) after returning to India?
- Yes. India offers Section 89A (Form 10EE) to defer 401(k) taxation until withdrawal, matching the US treatment. The election is one-time and irrevocable — we file it with the first return.
The frameworks on this page are drawn from NRI Tax Blueprint 2025 — written by Regi Tom Antony, FCA, the practicing CA who advises on the same problems every week.
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Open →Browse all guides
Deep guides across tax, FEMA, property and return planning.
Open →- RTA & Associates· Chartered Accountants
- NRI Tax Blueprint· Authored playbooks
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