Definition

An NRO account holds income that arises in India — such as rent, dividends, or a local salary — for someone living abroad. Interest is taxable in India and subject to TDS, and repatriation out of India is capped annually and requires documentation. It pairs with an NRE account, which handles foreign-earned funds.

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. NRE Account (Non-Resident External)

   An Indian bank account for non-residents holding foreign earnings, freely repatriable and tax-free in India.
2. RNOR (Resident but Not Ordinarily Resident)

   A transitional Indian tax status that shields foreign income for returning NRIs for a limited time.
3. Foreign Tax Credit

   A U.S. credit for income taxes paid to another country, reducing double taxation.