An entrepreneur who moved back to India from the US has shared a list of misconceptions he believes many NRIs have before returning to the country.
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. “This is what nobody tells NRIs before they move back,” the text on the video read.
One of the biggest misconceptions he highlighted was the belief that “India is cheaper”. Dutta said that while rent and domestic help may cost less, several major expenses can still be significant.
“‘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 pointed to several tax-related issues that returning NRIs may overlook. According to Dutta, people should not assume they can sort out their taxes after arriving in India, as the date of return can affect their residential status for the financial year.
Another misconception, he said, is that India immediately taxes all US income once an NRI returns. Dutta noted that some returning Indians may qualify for Resident but Not Ordinarily Resident (RNOR) status for two or, in certain cases, three years, depending on their circumstances.
He also cautioned NRIs about NRE bank accounts, saying that once a person becomes a resident, the account needs to be redesignated. Leaving it unchanged, he warned, could create issues under FEMA rules.
Dutta further said that returning to India does not necessarily mean an NRI has to sell US rental properties. “You can own and manage US property from here. IRS still wants a return,” he wrote.
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 a property usually needs to have been the seller’s primary residence for at least two of the previous five years to qualify, subject to applicable rules and exceptions.
He also highlighted US tax considerations for non-resident sellers and possible estate-tax exposure for non-residents holding US assets.
Another misconception, according to Dutta, is that returning NRIs must cash out their 401(k) accounts. He said they should not assume this is necessary, noting that withdrawals before the age of 59½ can generally attract taxes and an additional 10 per cent penalty, subject to exceptions.
Dutta also addressed immigration-related concerns. He said green card holders should not assume they can freely move between India and the US without consequences. Extended stays outside the US can raise questions over maintaining permanent-resident status and may lead to further complications.
On citizenship, he said people who have acquired a US passport should not assume they can simply reclaim Indian citizenship, 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. “CIBIL starts you at zero. Keep one US card alive,” he wrote.
Health insurance was another area he flagged. Dutta said returning Indians should not wait until they need medical treatment to buy an Indian policy, as insurance plans may have waiting periods, including for pre-existing conditions.
He also questioned the idea that having ₹5 crore automatically means a person can retire comfortably in India.
“5 Cr is enough. I think enough is not a savings number. It’s what comes in monthly without you working,” he wrote.
His final point was more personal than financial. Dutta said returning to India does not necessarily mean life will feel exactly as it did before moving abroad.
“The city moved on. And somebody in the family still thinks dollars grow on trees. That one took me the longest,” he wrote.
