An entrepreneur who moved back to India from the US has shared a list of misconceptions he believes NRIs often have before returning to the country.
“‘India is cheaper’. I mean rent is, help is but an International school, a car, a 3BHK in Gurgaon are not cheap,” he wrote. He also listed several tax-related misconceptions. He also cautioned NRIs about their NRE accounts. “You can own and manage US property from here. IRS still wants a return,” he wrote.
Gaurav Dutta, a former Tesla employee who said he moved back to India in December 2024 while continuing to manage his US rental properties, shared the list in an Instagram post. He explained that once a person becomes a resident, the account needs to be redesignated, and leaving it unchanged could create FEMA-related issues. (Also Read: NRI praises USA’s 5 am culture, viewers say ‘it’s sanatan culture too’ ) Further, Dutta said that returning to India does not necessarily mean an NRI has to sell their US rental properties.
“This is what nobody tells NRIs before they move back,” the text on the video read. Among the misconceptions he highlighted was the belief that “India is cheaper”. Dutta said that while rent and domestic help may cost less in India, several major expenses can still be significant. Dutta said that people should not assume they can figure out taxes after they’ve landed in India, as the date of arrival can affect their residency status for the financial year. Another misconception, according to him, is that India immediately taxes all US income after an NRI returns. Dutta said that many returning Indians may qualify for Resident but Not Ordinarily Resident (RNOR) status for two or, in some cases, three years, depending on their circumstances.
He also addressed the belief that a US house can always be sold tax-free. Dutta pointed to the general US home-sale exclusion rules, under which the property generally needs to have been the seller’s primary residence for two of the previous five years to qualify for the exclusion, subject to applicable rules and exceptions. He further highlighted US tax considerations for non-resident sellers and estate-tax exposure for non-residents who own US assets. Extended periods outside the US can raise questions about maintaining permanent-resident status, while prolonged absence can create additional complications. “CIBIL starts you at zero. Keep one US card alive,” he wrote. Health insurance was another concern. I think enough is not a savings number. It’s what comes in monthly without you working,” he wrote. His final point was less financial and more personal. “The city moved on. And somebody in the family still thinks dollars grow on trees. That one took me the longest,” he wrote.
Another misconception he mentioned was that returning NRIs need to cash out their 401(k) accounts. Dutta advised against assuming this is necessary, noting that withdrawals before age 59½ can generally involve taxes and an additional 10% penalty, subject to exceptions. (Also Read: NRI recalls leaving stable job, family in India to ‘flip burgers’ in Canada: ‘Drunk customer threw a drink at me’ ) Dutta also addressed immigration-related misconceptions. Dutta also questioned the idea that having ₹ 5 crore automatically means a person has enough money to retire comfortably in India. “5 Cr is enough.
He said that green card holders cannot simply assume they can “come and go” between India and the US without consequences. On citizenship, Dutta wrote that people who have obtained a US passport should not assume they can simply “take their Indian citizenship back”, pointing to India’s restrictions on dual citizenship. He also said returning NRIs should not expect their US credit history to automatically transfer to India. Dutta said that returning Indians should not wait until they need medical coverage to buy an Indian policy, as policies can have waiting periods, including for pre-existing conditions. Dutta said returning to India does not necessarily mean everything will feel exactly as it did before moving abroad.
