Things to do after returning to India

Here is a checklist of items to do immediately after returning to India (based on community inputs).

  1. Apply for an Aadhaar card. Most places will need this as your ID. Give your passport as address proof.
  2. Apply for a PAN card. Visit your local Akshaya center for help.
  3. Apply for a secured credit card (deposit amount and get a credit card based on it). This will help you build your CIBIL score early on.
  4. Open a bank account (give your local address proof).
  5. Your status is still an NRI for 180 days after your return. So use it wisely. Change your status after 180 days.
  6. Withdraw your foreign funds to your NRE account before your status changes.
  7. Pick up a medical insurance plan for your family.
  8. Start an SIP.

What else can you think of? Please share.

If you need short term rentals for furnitures and electronic appliances rentomojo and furlenco are good options.
Have used them and they gave me additional time to get my home situated

That’s useful info Shreay. Which city did you use them?

I used them in Chennai, but it is essentially available in all major cities.

Thanks Mani. Just quick clarifications on couple of points:

#5. When you say, use the NRI status wisely? Any specific reason‽

#6. Any reason why remit funds through NRE? And not directly to your Indian savings account later. I imagine that you are referring to some tax complications. Would be helpful if you could clarify as my understanding is that inbound remittances are not an issue.

Hey Gaurav,

Good question.

#5. Yes. This is a grey area. Many folks are unaware that they have to let the bank know of the change in status and convert any NRE accounts they have to normal NRO accounts. It would be illegal if you didn’t do it. Some banks ask for KYCs on regular intervals (visa etc) and if you aren’t able to provide them, they revoke your status automatically. Some banks aren’t that strict. So comes with it the pros and cons.

I feel as responsible citizens we should let the Govt. and banks know the change in status accordingly.

And during this time (~180 days) you are an NRI and can avail the benefits any NRI would have. Like transferring money from abroad to India.

#6 yes couple of reasons.

  • Funds in your NRE account is tax free. You might want to take advantage of it.
  • NRE accounts “can get” (not guaranteed) better exchange rates. You might want to take advantage of it as well.

Hope that helps. :slight_smile:

Thanks Mani for the pretty quick response.

That makes sense, I am wondering that since you move back for good- then would you be eligible for a savings account? Or if you have a joint savings account from the past then use that.

On remittance, while it’s tax free for NRE accounts but is it taxed if let’s say you choose to bring it back after a year or two directly to your savings account? Considering that countries income is earned before the move and you have the tax documents as a proof.

Otherwise, many of us might already have their existent Adhaar/PAN/bank accounts before moving abroad so any experience using them again? Do we need to notify any department etc. or change any status‽

Hi Gaurav,

Yes of course. Once your status is switched to non NRI, you can very well get started with a normal savings account. And you can continue to use your old savings account (which should have been converted to NRO while you were an NRI, btw).

If you move your funds to normal savings account, then it will attract taxes, yes. Not entirely sure if the documents will help though. Will await comments from someone who has done it.

Reg: Aadhar and PAN yes you can continue using it, no change required. Other than that you might need to get new laminated ones. :slight_smile:

Hi Gaurav,

I am in the same situation. Trying to hold on to my NRE account while I transfer rest of my funds from US to India. But I need resident account for starting new investments here.
I activated an old/dormant resident account in other bank but not sure if I can transfer from my NRE to resident account?

Any suggestions?

I don’t think there would be any problem doing the transfer as long as both accounts are KYC done and tied together.

Thanks, Mani. I didn’t follow the last part. KYC is updated on both accouns but what does “tied together” mean here?

Associated with the same person.

Very useful information. Thanks for sharing a succinct summary. I assume these apply for Indian citizens. What would be different for OCI card holders? For example, would the change from NRE to NRO account apply for OCI card holders?

In the scenario that I decide to buy Stocks or ETFs (such as SPY/QQQ) with my savings and keep them here in a brokerage account, when I liquidate I’d be double taxed on my savings + a tax on any gains since then?

I save tax when I transfer money to NRE account, but happens when I move back to India and wants to start using that money? If I start withdrawing then will it get taxes at that time in India?