H-1B Holders Returning to India in 2026: Tax Residency, RNOR and Your US Retirement Accounts, plan the move before you book the flight.

• A federal court vacated the guidance implementing the US$100,000 fee in June 2026, and an appeals court refused to pause that order in July; the fee was not being collected in early October 2026.
• A further proclamation and a separate proposed filing fee mean the position is unsettled; confirm with US immigration counsel.
• The fee applied to new petitions for workers outside the US, not to extensions or changes of status inside the US.

• You become resident in India for a financial year (April-March) mainly based on days spent in India in that year and earlier years.
• Returning NRIs are usually RNOR for a period if they were non-resident in 9 of the previous 10 years, or spent 729 days or fewer in India in the previous 7 years.
• As RNOR, foreign income such as US salary for the period before return, US interest or US investment gains is generally not taxed in India unless received in India or derived from a business controlled from India.
• Once ordinarily resident, worldwide income and foreign assets must be reported in Indian returns, including Schedule FA. Missed reporting can now be regularised under FAST-DS until 31 December 2026.

• India allows income accruing in retirement accounts in notified countries, including the US, to be taxed in India on withdrawal rather than year by year, if you opt in on time with the prescribed form.
• US withholding and early-withdrawal penalties apply to distributions; plan with a US tax adviser before cashing out.
• Convert NRE and FCNR deposits to resident accounts after return and keep track of when the FCNR rate protection ends.
• US brokerage accounts may restrict Indian residents; plan transfers before your address changes.

Sources: Forbes, 1 Oct 2026.

Last updated: 28 October 2026. Immigration status is outside BQP's scope; consult US immigration counsel. Confirm against the official circular or notification before acting.