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NRI · Relocation

Tax planning for moving abroad

Manage your finances, accounts, and taxes when relocating from India.

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relocation timeline

Your relocation timeline

Step-by-step checklist to ensure a smooth transition.

3-6 Months Before4 items
  • 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 Before4 items
  • 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 Departure4 items
  • 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 Moving4 items
  • 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

accounts

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

Year of Departure

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

impact

Both Indian and foreign income taxable as resident for part of the year

After Becoming NRI

Only Indian-sourced income is taxable in India

impact

Foreign salary not taxable in India (but may be taxable in new country)

Capital Gains

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

impact

20.8% TDS on property sale (vs 1% for residents)

DTAA Benefits

Obtain TRC to claim treaty benefits and avoid double taxation

impact

Can reduce withholding tax rates on Indian income

checklist

Master checklist

Don't miss any critical step.

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