Definition

RNOR is an Indian tax status that often applies for the first two to three years after an NRI returns to India. During this window, foreign income (such as U.S. investment income) is generally not taxed in India, making it a valuable planning period for moves like selling appreciated U.S. assets. Eligibility depends on your prior years of non-residency.

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. NRO Account (Non-Resident Ordinary)

   An Indian account for non-residents to manage income earned within India, with limited repatriation.
3. Foreign Tax Credit

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