Moving Abroad

Tax Planning for Moving Abroad

Complete guide to manage your finances, accounts, and taxes when relocating from India

Your Relocation Timeline

Step-by-step checklist to ensure smooth transition

3-6 Months Before
Action Items: 4
  • Calculate exact departure date for tax residency planning
  • Review and optimize existing investments (sell/hold decision)
  • Close unnecessary bank accounts and consolidate funds
  • Update PAN and Aadhaar with overseas address
1-3 Months Before
Action Items: 4
  • Convert resident savings account to NRO account
  • Open NRE account for foreign salary deposits
  • Complete pending tax filings (previous years)
  • Obtain Form 15CA/15CB for any foreign remittances
Before Departure
Action Items: 4
  • Get PAN and Form 16 for the financial year
  • Collect salary slips and Form 12BB for current FY
  • Update address and contact details with banks/brokers
  • Set up net banking and email alerts for Indian accounts
After Moving
Action Items: 4
  • Obtain TRC (Tax Residency Certificate) from new country
  • File ITR in India for the year of departure (split-year return)
  • Disclose Indian assets in foreign country if required (FBAR, FATCA)
  • Review DTAA benefits and foreign tax credit options

Bank Account Changes

What happens to your existing accounts

Savings Account
Convert to NRO

Why?

Cannot maintain resident savings account as NRI

Impact:

Interest taxable + TDS applicable

Fixed Deposits
Convert to NRO FD or open NRE FD

Why?

NRE FD offers tax-free interest

Impact:

NRE = tax-free, NRO = 30.9% TDS

Demat Account
Update to NRI Demat

Why?

Different compliance for NRI investments

Impact:

Can continue holding, selling allowed

PPF/EPF
Continue till maturity

Why?

NRIs can continue but not make fresh contributions

Impact:

Tax benefits may change

Tax Implications

Understanding your tax liability in India

Year of Departure

You will file a split-year return (April-departure date as resident, post-departure as NRI)

After Becoming NRI

Only Indian-sourced income is taxable in India

Capital Gains

If you sell property/stocks after becoming NRI, higher TDS applies

DTAA Benefits

Obtain TRC to claim treaty benefits and avoid double taxation

Master Checklist

Don't miss any critical step

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