Watch: How to Plan Finances When Moving Back to India: 9-Step NRI Roadmap
A practical 9-step finance roadmap for returning NRIs covering target corpus, RNOR timing, retirement accounts, HSA, Social Security, property, and tax forms.
The full write-up, with the numbers and the links.
Chapters
- 0:00 Introduction
- 1:30 Mindset Shift
- 2:45 Are you financially ready
- 4:35 Tax planning
- 5:55 Retirement accounts
- 6:50 HSA
- 7:25 Social Security
- 8:10 Property
- 9:00 Exit Tax Forms
- 9:40 Cut Through the Noise
Transcript
Auto-generated captions, lightly cleaned
0:00 Hi, I'm Avin. If you're new here, welcome. I have been in NRI for 20 years. My journey started in 2002 when I went to US for my masters. Over the years, I had successful career, built businesses and navigated the ups and downs of living abroad. In 2022, I returned to India and a year later, I have founded DIY return, a platform dedicated to help NRIs move back with financial confidence. I have interacted with several returning NRIs, interviewed hundreds of them and partnered with financial experts, CAS and institutions like IDFC Bank.
0:57 While I'm happy with my decision to move back to India, I often think if I had the knowledge that I do now, I would have probably done few things differently. So in this video I will walk you through exactly how I would plan my finances if I were returning back to India in 2025. So let's dive into step one which is setting the right mindset.
1:30 Most people start their journey by googling should I move back to India and suddenly find an emotional video that talks about hardships of life abroad and the bliss of life in India and before you know it you are in a YouTube rabbit hole consuming random advice that makes moving back seem like a quick emotional decision. But here is the truth. Moving back is also a serious financial transition, too. It's not just about cheap labor and reconnecting to roots. It is also achieving financial independence and long-term stability. You need a mindset shift. Like anything worthwhile, becoming financially strategic about your return takes time, clarity, and structured planning. If you're willing to commit to that, I will walk you through a solid road map that
2:32 Guides you every step of the way. Once your mindset is right, the next question is, are you really financially ready to move back?
Read the full transcript (12 more sections)
2:46 This starts with knowing your target corpus. What's your number? Whether you're moving for good or just taking career break, you need to understand how much is enough and what it covers. I have broken this down in my video how much money do you really need to move to India in 2025 where I share cost of living breakdown scenarios of working versus retiring in India and how much corpus do you need in those scenarios. Then comes the NRI financial checklist. This includes what to do with your foreign bank accounts. How to handle 401k, HSA, insurance and credit cards, what to freeze, what to convert and what to update. Post move actions like converting NRE NRO accounts, updating
3:48 The DMAT accounts and much more. I will go deep into these in another video. Financial planning checklist for NRIs moving back to India. All the links are in the road map PDF below. Yes, you can Google things and scroll through forums. But much of the information is outdated or scattered. That's why I created a complete upto-date video series. And I also recommend joining relevant groups before you move. In our own DIY community, we actively discuss real current financial challenges people face while returning.
4:35 Now let's talk about the timing especially from a tax planning perspective. As soon as you decide to move back, one of your biggest concern will be how do I bring my money back to India without getting crushed by taxes. You might have heard some scary headlines like proposed 5% remittance tax for NRIs, the new Indian tax bill 2025 and how it will affect NRIs. These stories makes it feel like the window to act is closing fast. But lot of NRIs don't realize that you actually do have a window and it is called R N status. RN stands for resident but not ordinary resident. And if you plan it correctly, it gives you a significant tax advantage. It provides a limited time
5:36 Exemption on the tax in India that you would normally pay for your foreign income plus other tax advantages. I have covered in detail in one of my videos which is included in the road map PDF. Once your tax timeline is sorted, the
5:56 Next step is to handle your retirement accounts. And trust me, this one is tricky. Many people think, "Oh, I will just withdraw my 401k or IRA." But early withdrawal can cost you a 10% early withdrawal penalty. Double taxation due to mismatched US and India tax loss. But here is the good news. If you plan it right, you can avoid these traps. Some smart strategies include substantial equal periodic payments called SEP, the rule of 55 if you're older than 55 years, Roth conversions for tax efficiency. I have a detailed video on these strategies too, and you will find them all in the road map PDF.
6:48 Still in the US retirement zone. Let's
6:51 Not forget about the health savings account, HSA. Most NRIs completely ignore this, but it can be a valuable resource if managed properly. Yes, you can still use HSA funds for medical expenses in India, but only if documented and reported correctly. Otherwise, you risk getting into trouble with IRS. Track your expenses, keep receipts and stay compliant. With that being said, let's move on to next step.
7:29 So with your HSS sorted now, let's look at another crucial financial element, social security and other US benefits. A common myth, I won't get social security if I live in India. Wrong. You can still qualify for and receive these benefits even while living in India. But here is the catch. There are certain conditions that you need to meet to be eligible for these benefits. You might be leaving money on the table and that's not something that you want to overlook when planning your finances for a long run.
8:12 Okay. Now, let's talk about one of the biggest financial and emotional decisions. What to do with your property abroad. Sell, rent, or hold. Each path has its pros and cons, and the wrong move could lead to paying more taxes, loss rental income, estate planning messes. Take your time. Think ahead 3 to 5 years from now. Look at your actual needs and not just your emotions. We have included a stepbystep decision framework in the road map PDF.
9:01 This next step may seem technical, but it's crucial. Piling the right exit and tax forms. One of the most common and expensive mistakes is filling out form W8BN and other non-resident forms incorrectly. A single check box can lead to extra tax withholding, double taxation, or even compliance issues. Don't rush this. If you mess this up, you could end up withholding more taxes you don't owe.
9:42 And finally, cut through the noise. When you announce that you are planning to move back, everyone will become a financial adviser. Your cousin, your childhood CA, random Facebook comments. But the truth is bad advice is expensive. Good advice saves you money and peace of mind. I would recommend getting in touch with a good charted account. So that's how I would plan my finances if I were moving back to India in 2025. If this video helped, give it a thumbs up and let me know in the comments what part of the road map resonated with you most. Download the NRI financial planning road map. It's a tool I wish I had when I moved back. It will save you hours of research, stress, and thousands
10:43 In mistake. And if you're serious about getting it right, subscribe to our channel for more deep dives and step-by-step guidelines. Until next time, take care.
