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Mar 12, 2026
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Moving back to India? Five most costly reporting mistakes returning NRIs make in their first ROR tax return
Moving back to India is one of the most important financial transitions an NRI can make. Though the decision to return often begins with excitement about settling back home, it also brings a complex shift in tax and financial status.
Once the initial phase settles, many returning Indians move through a tax transition known as RNOR (Resident but Not Ordinarily Resident) before eventually becoming Resident and Ordinarily Resident (ROR). Each stage carries different tax implications.
In an exclusive conversation with FinancialExpress.com, CA Sagar Soman, Consultant – NRI Taxation & Cross-Border Wealth Advisory, explains how returning NRIs should navigate this transition and avoid common mistakes.
RNOR is a valuable tax window but not a long-term strategy
According to Soman, many returning NRIs try to maximise tax-free growth during the RNOR phase by keeping money abroad. However, this decision should not be automatic.
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