As coronavirus continues to spread worldwide and the resulting unemployment in the United States exceeds 40 million, several non-resident Indians living in the United States are severely affected. Many go on special evacuation flights and return to India.
Are you entitled to participate in these special evacuation flights to India?
Find out here
Moving the lock, warehouse and barrel at a time when unemployment and insecurity have forced your hand is no easy task. In addition to having to adjust and settle your family in India, there are some relevant formalities to complete before you leave the United States for India.
Related Article: TSA Announces New Airport Rules During Corona Virus
Here we discuss what NRIs should do when they return to India
- Clear credit, credit card debt
In addition to outstanding personal property loans such as home and car, it is important to ensure that you pay all expenses on your US credit cards and pay debts. Interest on outstanding credit card bills can quickly accumulate over time and affect your global credit rating. Close or discontinue these credit cards after deletion.
- Notify all financial institutions
Inform your bank and / or credit union about your change of address and close all non-functional bank accounts. You can Transfer your savings to India
Was fired on an H1-B visa?
You should do the following in the next 60 days:
Once you are in India and your long-term residency plans are complete, it is important to convert your NRE and FCNR accounts into NGO and resident savings accounts. This is important to avoid penalties under the Foreign Exchange Management Act.
Before doing so, however, it is important that you repay all of your foreign earnings / savings to NRE and FCNR accounts.
During this transition, it is important to know the NRI tax rules.
When returning to India, it is important to clarify the residence status for tax purposes.
Did you know that NRI status has been redefined?
Here’s what makes you an NRI
For a resident who does not have his usual place of residence (RNOR), income outside of India is not taxable. However, once you return to India in the long term, taxing your income depends on your residence status.
Related article: More about NRE and NGO bank accounts
It is important to note that everyone Foreign currency not resident (FCNR) Deposits (fixed deposits in foreign currency) remain tax-free. This in turn is subject to RNOR status.
Health insurance is a requirement, whether you are in the United States or returning to India. Because health insurance purchased in the United States may not cover you and your family in India, it is important to take out a policy immediately upon arrival in India. This is especially true in the current times of the Covid pandemic.
Related article: If you are unemployed in the United States and your health insurance is linked to your employer, you should take out temporary health insurance to protect yourself and your family members.
It should be noted that the life insurance premium you pay in India is not taxable under section 80C of the Income Tax Act.
More information on leaving the United States
Check out this exit plan
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