The Classic Partners LLP
Recent Immigrant Services
Moving abroad from India or returning home? Our recent immigrant services cover residential status transition, bank account redesignation, exempt income protection, FEMA compliance, and first-year tax filing on both sides of the move.
Plan Your MoveWho is a Recent Immigrant?
A recent immigrant is an Indian citizen who has recently left India to settle abroad for work, business, or family — or an NRI who has recently returned to India. In both directions, your residential status changes, and with it your tax, banking, and FEMA obligations. The first one or two financial years around the move are where most compliance mistakes — and most planning opportunities — occur.
Leaving India: First-Year Checklist
- Confirm the year you break residency — Indian citizens leaving for employment get the full 182-day threshold.
- Redesignate resident savings accounts to NRO, and open NRE/FCNR accounts for foreign earnings.
- Update PAN and KYC records to non-resident status — see PAN for NRIs.
- Plan TDS on Indian rent, deposits, and investments; apply for lower-deduction certificates where justified.
- File the departure-year return correctly, splitting income before and after the status change — see filing return of income in India.
Returning to India: Protecting the RNOR Window
- Time your return date to maximise RNOR status (typically 2–3 years), during which foreign income generally stays out of the Indian tax net.
- Keep FCNR/RFC deposits earning exempt interest while RNOR.
- Redesignate NRE/NRO accounts and update FEMA status from the date of return.
- Prepare for Schedule FA foreign asset reporting once you become ROR.
- Consider a Section 115H declaration to retain concessional taxation on eligible investments.
Our Recent Immigrant Services
Move-Date Planning
Day-count modelling to choose the most tax-efficient departure or return date.
Status & FEMA Transition
Residential status determination under both the Income Tax Act and FEMA.
Banking Redesignation
NRE/NRO/FCNR/RFC account guidance and KYC updates.
Transition-Year ITR
Return filing for the split year with DTAA relief on both sides.
Foreign Asset Reporting
Schedule FA disclosure and Form 67 foreign tax credit once resident.
Ongoing Compliance
Annual status checks and filings — start with our NRI tax filing overview.
Frequently Asked Questions
What should I do with my bank accounts when I move abroad?
Resident savings accounts must be redesignated as NRO accounts, and you can open NRE and FCNR accounts for foreign earnings. Operating a resident account after becoming a non-resident breaches FEMA.
How long does RNOR status last for a returning Indian?
Typically 2 to 3 years depending on your past residency and day counts, during which foreign income (other than from a business controlled from India) remains non-taxable in India.
Do I pay Indian tax on my foreign salary after moving abroad?
No, once you qualify as a non-resident, salary earned and received abroad for services rendered abroad is not taxable in India; only your India-sourced income remains taxable.
When must I report my foreign assets in India?
Foreign assets must be reported in Schedule FA of the Indian return once you become Resident and Ordinarily Resident (ROR); RNORs and non-residents are not required to file Schedule FA.
Can The Classic Partners handle taxes in the year I move?
Yes. We specialise in transition-year filings — determining the exact date your status changes, splitting income correctly, claiming DTAA relief, and coordinating compliance in India while you settle abroad or back home.
Planning a move abroad or back to India?
Get your transition year structured before you travel — the right move date alone can save a full year of global taxation.
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