Moving countries as an NRI: a checklist for tax residency, property and money

An India–Australia move involves more than a flight and a new address. Work may start in one country while rent, savings and family commitments remain in the other. Returning to India can be just as complex: the date you settle, the assets you retain abroad and the income you continue to receive all matter. A practical starting point is one record of your dates, income and assets, followed by separate checks in each jurisdiction.

1. Map your residency dates

Build a travel timeline before departure or return. Record when you enter and leave each country, where you have a home available, where your family lives, and when employment or a business begins or ends. Include ongoing personal, financial and social ties rather than recording only the number of days abroad. Keep passport pages, tickets, leases and employment records together so that the timeline can be checked.

India's income-tax residency tests are not the same as residence under FEMA, the framework governing foreign exchange. Tax status is assessed for the relevant tax year under the applicable tests and exceptions; FEMA considers different facts and purposes. The Income Tax Department's Non-Resident FAQs are a starting point, not a substitute for applying the full rules to your history.

Australian tax residency is not determined only by a day count. The ATO considers several tests, including the resides test, with factors such as intention, home, family, employment and living arrangements. Review a move to Australia and a departure from Australia separately. A permanent visa does not, by itself, settle tax residency.

2. List income by country

Make an income inventory for each country and relevant tax year. Identify who owns or earns each amount, when it arises, where it comes from, and any tax already deducted or paid. Indian and Australian tax years do not align, so keep dates on the underlying records instead of relying on a single annual total.

• Employment and business: salary, bonuses, consulting receipts, business profits and continuing work across the move.
• Property: rent and expenses, as well as any planned disposal.
• Savings and investments: interest, dividends, distributions and investment gains.
• Retirement arrangements: pensions and Australian superannuation, including any proposed payment or withdrawal.
• Sale proceeds: record the asset, purchase history, costs and sale documents; a gross receipt is not automatically the taxable gain.

What must be reported depends on residency, income source and the rules for the particular income. A transfer between your own accounts is not the same question as the tax treatment of the income or asset that produced the money. Australian residents generally report foreign income, while foreign and temporary residents can have different treatment. Check the ATO's foreign-income guidance and relevant asset rules.

3. Review Indian bank accounts

Tell each Indian bank when your status changes, including when you return to settle in India. Ask which account types and classifications are appropriate and whether existing accounts need redesignation. Do not assume that last year's account arrangements remain suitable after a move.

• Check the bank's requirements for account type, address, contact details, KYC and residential-status records.
• Ask how interest and any tax deduction will be treated for your status and account.
• Confirm what documents are needed for inward or outward transfers, including evidence of the source of funds.
• Keep statements, account-change confirmations and the bank's written instructions with your tax records.

RBI FAQs explain account frameworks, but the governing FEMA regulations and directions and your bank's checks still apply. The resident-account FAQ linked below is relevant to resident arrangements, including a return; use the separate RBI non-resident-account guidance for NRI accounts. Neither should be treated as a blanket permission for a transfer.

4. Inventory property

For each property in India or Australia, record the legal owners, acquisition date and cost, financing, current use, rental history and any proposed sale. Distinguish a family home from a rental or investment property. Gather title documents, purchase contracts, loan statements, improvement invoices and rental records before they become difficult to retrieve.

Check ownership and transaction restrictions, tax consequences and any buyer withholding before signing. In Australia, foreign-resident capital-gains withholding and clearance-certificate requirements can affect settlement; withholding is not necessarily the final tax liability. In India, the seller's status, property and transaction facts can affect tax deduction and the paperwork needed to transfer proceeds.

The RBI property FAQ linked below concerns overseas property held or acquired by Indian residents; do not read it as a general rule for an NRI's Indian property. The ATO's foreign-resident CGT guidance addresses taxable Australian property, while its withholding guidance addresses the settlement process. Use the source that matches the decision you are making.

5. Plan cross-border transfers

Start with the source of the money: salary, rent, savings, investment sale, property sale, gift or inheritance. Then identify the account holding it and the receiving account. Confirm the applicable remittance route, limits and documentation with the authorised bank before initiating the transfer. Different sources and account types can be treated differently.

• Retain sale agreements, income statements, inheritance or gift records, and the bank trail showing receipt.
• Keep tax returns, assessments, withholding certificates and proof of payment where relevant.
• Ask whether declarations, certifications or additional bank documents are required for your transaction.
• Confirm currency, beneficiary details, charges and the bank's processing requirements before sending funds.

6. Before-you-move checklist

1. 1Build a year-by-year travel timeline, with supporting evidence and key changes to home, family and work.
2. 2List income, accounts and property in India and Australia, including joint ownership and continuing commitments.
3. 3Ask suitably qualified advisers to assess each jurisdiction separately, FEMA status where relevant, and any treaty or foreign tax relief.
4. 4Notify banks of status changes and confirm account, KYC and interest-treatment updates.
5. 5Plan property decisions and check restrictions, tax and withholding before signing anything.
6. 6Retain source-of-funds, acquisition, sale and tax records in an accessible, backed-up folder.
7. 7Confirm the transfer route, applicable limits and required evidence with the bank before sending funds.

Disclaimer: General information only, not tax, legal, investment or migration advice, and not individualised advice. Rules change. Verify the current position with the relevant authorities and suitably qualified advisers before making decisions, signing contracts, filing returns or transferring funds.