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US–India Tax, FEMA & Financial Advisory for NRIs & OCIs.
In short
US visa, green-card or citizenship status does not decide Indian tax residency. Apply Section 6 day-counts, the relevant visitor/employment exceptions and any deemed-residency rule. Section 158 (earlier Section 89A), elected through Form 40 (earlier Form 10-EE) and subject to the prescribed conditions, may align tax on a notified US retirement account with withdrawal. Schedule FA is not required while NR or RNOR; it applies when ROR. US tax residency and any treaty credit are reviewed separately, and RSUs need workday and source analysis.
Last reviewed: June 2026 · Updated for AY 2026-27
What do United States NRIs ask first?
The same four pillars (tax, FEMA, property, return) apply everywhere — but the order changes by corridor. Here's where United States cases usually start.
- 01401(k) and IRA treatment
- 02FBAR and Schedule FA
- 03RSU vesting and India tax on return
- 04Estate-tax exposure
- 05Green card surrender and exit tax
How do we help United States NRIs?
Book a focused advisory call tailored to your corridor.
- 01US-India return planning call
- 02RSU & 401(k) sequencing review
- 03Green-card exit tax review
Deep reads for United States NRIs.
Step-by-step explainers for the United States corridor.
- 01Return to India from the USA checklist
- 02India-US DTAA: avoiding double taxation
- 03Residential status under Section 6 (NRI, RNOR, resident)
- 04Schedule FA and foreign asset disclosure
- 05NRE/NRO/FCNR setup
- 06Selling Indian property as an NRI
- 07TDS Section 395 (earlier section 197) route
- 08Repatriating sale proceeds
- 09How NRIs file income tax in India
What changes when you return to India from United States?
What makes a permanent return from United States different, from more than 250 NRI Come Back Plans prepared by Regi Tom Antony & Associates in the last ten years. Regi returned to India himself after around 20 years abroad.
- 01401(k) and IRA withdrawals: timing them against your RNOR years and the India-US DTAA decides whether the same dollar is taxed twice. Relief under Section 158 (earlier Section 89A) is available only for notified accounts and only if you elect it.
- 02US estate tax: once you are no longer US-domiciled, US-situs assets above USD 60,000 (US shares, US property) can still attract US estate tax at death. India has no estate duty, so this is easy to miss.
- 03Green Card holders: giving up long-term residence can bring the US expatriation rules into play. Decide on the card before the move, not after.
- 04Foreign assets: FBAR and Form 8938 end with US tax residence; Indian Schedule FA starts in your first year as Resident and Ordinarily Resident.
| Status | Indian-source income | Foreign-source income | Schedule FA (foreign assets) |
|---|---|---|---|
| Non-resident (NR) | Taxed | Not taxed if earned and received outside India | No |
| Resident but Not Ordinarily Resident (RNOR) | Taxed | Taxed only if received in India, or derived from a business controlled in, or a profession set up in, India | No |
| Resident and Ordinarily Resident (ROR) | Taxed | Taxed on worldwide income, with DTAA relief for foreign tax paid | Yes |
Keep exploring.
Step-by-step ITR filing: forms, residential status, Schedule FA and refunds.
The day-count tests that decide whether you are NRI, RNOR or resident.
RNOR sequencing and a personal move-back roadmap.
Browse every NRI tax, FEMA and return guide.
Got a question specific to United States?
Mention the country and life stage — we'll send back a corridor-specific reply.
Answered, candidly.
- If I'm on H-1B, am I an NRI for Indian tax purposes?
- Almost always yes — physical presence in India determines residency. The visa doesn't.
- Are my US capital gains taxable in India?
- Not while you're an NRI. After you return and become resident, global income becomes taxable — with DTAA credit for tax already paid in the US.
- Does my 401(k) get taxed in India after I return?
- Section 158 (earlier section 89A), using Form 40 (earlier Form 10EE), can align Indian tax on a notified foreign retirement account such as a 401(k) with withdrawal. Rule 21AAA attaches conditions on timing, continuation and what happens if you later become non-resident. The election is irrevocable and needs a review of your facts before filing.
- Do I need to file FBAR and Schedule FA?
- FBAR (FinCEN 114) applies to US persons with financial accounts outside the US whose aggregate value exceeds USD 10,000 at any time in the year. Keeping a US bank or brokerage account does not by itself trigger FBAR. Schedule FA is the Indian disclosure of foreign assets, required once you are Resident and Ordinarily Resident (not while NR or RNOR). The two filings overlap in scope but serve different governments.
- What is the US exit tax for green card holders?
- If you've held a green card for 8+ of the last 15 years and surrender it, you may be a 'covered expatriate' subject to mark-to-market exit tax under IRC 877A. We coordinate timing of surrender with Indian RNOR landing.
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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Regi Tom Antony, FCA — a practicing Chartered Accountant who advises NRIs, OCIs and returning founders on the same questions every week. Every page here is drawn from the book and live engagements, not stock copy.
Reviewed by Regi Tom Antony, FCA, who returned to India himself after around 20 years abroad and leads the NRI Come Back Plan at Regi Tom Antony & Associates: 250+ Come Back Plans in the last 10 years, covering RNOR timing, foreign pensions, Schedule FA, estate tax, FEMA, wills and family transition coaching.
- RTA & Associates· Chartered Accountants
- NRI Tax Blueprint· Authored playbooks
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