Definition

An NRE account lets Indians living abroad park foreign income in India in rupees. The principal and interest are freely repatriable back to the foreign country, and the interest is tax-free in India. Note that for U.S. tax residents, that interest is still taxable in the U.S. and the account counts toward FBAR and FATCA reporting.

1. Returning to India After Years in the US: A Financial Transition Guide

   Returning to India after a decade in the US involves winding down a complex web of US accounts, assets, and tax obligations — while building a parallel financial life in India. Here is how to plan it.
   immigrant finance

1. NRO Account (Non-Resident Ordinary)

   An Indian account for non-residents to manage income earned within India, with limited repatriation.
2. RNOR (Resident but Not Ordinarily Resident)

   A transitional Indian tax status that shields foreign income for returning NRIs for a limited time.
3. FBAR (Report of Foreign Bank and Financial Accounts)

   A required U.S. report of foreign financial accounts whose total exceeds $10,000 at any point in the year.