NRI’s and Returning NRI’s can take a humongous amount of tax benefit on the basis of the Double Tax Avoidance Agreements (DTAA) between India and their current country of residence. It is very important to plan out your taxation, before your transaction or before relocating to India. DTAA provides a safety net from double taxation, wherein for a specific income, you will not be taxed twice in both the countries separately. The general principles of DTAA is that, depending on your residency, and source of income, you will need to pay tax in one country only, or at most pay only the differential tax amount (in case one country’s tax rate is higher than the other).

Returning NRI’s are either NRI's or NOR for tax purposes but will become a permanent residing in India once tahy are back. Hence, Returning NRI Taxations is a little different compared to NRI Taxation or Resident Taxation.

If an RNRI has any investments or properties in India, we advise them that it is generally required to file tax returns in India for a couple of back years.

Once he files his Tax Returns in India all his investments, properties, are declared in India, and compliant with global laws. Then, there may be lesser questions asked once you transfer all your savings, retirement funds to India.

Ideally you should start the Tax Filing and Compliance process in India ,uch before you come back to India. This pre planing and restructuring will help you from a Tax point of view as well as from a Financial planning point of view and help you save unnecessary taxes.