(INDIA) Returning to India after years abroad is more than a flight and a shipping box. It’s a paperwork project that starts years earlier, because tax rules and banking rules depend on Tax residency history, Holding periods, and your Immigration and exit status in the country you’re leaving. If you wait until the return year, you often can’t recreate old records, prove cost, or time sales the way you wanted.
Below is a document-first checklist built around the “five years out” timeline. It focuses on what to collect, where to get it, how to store it, what format works best, when you’ll need translations, and the document errors that most often trigger delays with banks, accountants, and future tax audits. For official guidance on India’s tax filing framework and resident/non-resident obligations, use the Income Tax Department portal: Income Tax Department, Government of India – e-Filing.
Set up your “Return to India” document vault (do this now)
Create one coordinated folder system (cloud + local hard drive + one paper binder) and follow these rules to keep everything consistent and defensible.
- File naming:
YYYY-MM-DD_DocumentType_Institution_Country_Name - Prefer official PDFs: keep original statements in PDF, not screenshots. Export “official PDF statements” where possible.
- Master spreadsheet: list every asset, account, and income stream with: country, institution, account number last 4 digits, opened date, acquisition dates, and the exact document you have to prove it.
- Protect backups: store one copy offline (external drive or safe deposit).
This vault is where your Tax residency history and Holding periods proof will live. According to analysis by VisaVerge.com, people who build this vault early tend to face fewer “missing cost basis” and “unclear residency day count” problems later.
Five years before return: identity, status, and travel history proof
These documents form the base layer. Without them, it’s hard to prove when you became resident or stopped being resident in any country.
Collect:
– Passports (current and expired) with all entry/exit stamps.
– Visas, residence permits, work authorization cards, and renewal notices.
– Any departure, cancellation, or “end of residence” letters from the host country (if issued).
– A simple travel day-count log for each year (arrivals, departures, nights in India).
Where to obtain:
– Old passports: personal archives; if lost, request records from your issuing authority (process varies).
– Host-country status history: immigration portals or prior approval notices; if unavailable, request copies from your prior employer/attorney.
Common issues:
– People rely on memory for travel days. Later, that breaks Tax residency history calculations.
– Status end dates are unclear. That can affect Immigration and exit status and the tax year you’re treated as resident abroad.
Four years before return: tax residency and tax filing records (host country)
If you lived in the United States 🇺🇸 or another worldwide-tax system, “resident” can mean worldwide income reporting. You need proof of what you filed and when.
Collect:
– Complete tax returns for the past 6 years (federal and state/provincial where relevant), including all schedules.
– Wage and income statements (annual salary statements, bonus statements).
– Proof of tax paid: payment confirmations, assessment notices, and refunds.
– Tax residency certificates or similar proof if your country issues them.
Where to obtain:
– Tax preparer portal downloads.
– Employer payroll portals for annual wage statements.
– Tax authority online accounts for transcripts/filings (varies by country).
Formatting requirements:
– Keep the full return package as one PDF per year plus the raw attachments.
– Save CSV exports of brokerage tax forms if available.
Common issues:
– Only the signature page is saved, not the schedules. That weakens foreign tax credit work later.
– People miss the year they changed status, which matters for Immigration and exit status and split-year treatment.
Three years before return: global asset inventory documents (proof of ownership + cost)
India-side reporting and future capital gains math often come down to one question: can you prove the purchase date and cost? That’s Holding periods in action.
Collect, by asset type:
– Real estate abroad: purchase deed, closing statement, mortgage payoff statements, improvement invoices, property tax bills, and sale listing history if you plan to sell.
– Brokerage/investments: trade confirmations showing lot dates, monthly statements, annual summaries, and dividend statements.
– Bank accounts: account opening letters, monthly statements, and closure letters for accounts you shut.
– Equity compensation: grant letters, vesting schedules, exercise confirmations, and payroll statements showing withholding.
– Business interests: shareholder agreements, cap tables, distributions, and valuation reports if any exist.
Where to obtain:
– Real estate: title company/lawyer archives, county/land registry extracts, lender portals.
– Brokerage: “Documents/Statements/Trade Confirmations” sections; request historic statements if the portal limits downloads.
– Employer stock plans: stock plan administrator portals.
Common issues:
– Missing “lot-level” records for shares, especially after broker migrations.
– “Cost basis” is guessed, not documented, which can trigger disputes later.
Two years before return: retirement, pension, and long-term benefits file
Retirement accounts create expensive surprises if you don’t have plan rules in writing before you leave.
Collect:
– Latest plan statements plus a history of contributions.
– Summary plan descriptions and withdrawal rules.
– Any letters on rollovers, early withdrawal penalties, and beneficiary designations.
Where to obtain:
– Employer benefits portals and plan administrators.
– Prior employers’ HR departments for older plans.
Formatting requirements:
– Save the plan rules PDF and a dated statement from the same month, so rules match your account snapshot.
Common issues:
– People keep statements but not the plan rules. Later, they can’t show what restrictions applied when decisions were made.
Two years before return: bank and compliance documents you’ll need in India
When you become resident in India, banks may ask for proof of arrival date and source of funds. Having clean paper reduces delays.
Collect:
– Foreign bank closure letters (for accounts you close).
– Wire transfer confirmations for large transfers.
– Source-of-funds support: payslips, sale contracts, dividend statements.
– A current address proof set for India (lease, utility bill, or similar once available).
Where to obtain:
– Bank portals for wire PDFs; branch requests for closure letters.
– Employer payroll portals.
Common issues:
– Transfers arrive in India without a clear paper trail, causing long bank queries.
One year before return: execution documents for major transactions
This is where the record trail must be perfect. If you sell assets, exit a business, or move large money, keep “before and after” proof.
Collect:
– Sale contracts, broker closing statements, and settlement confirmations.
– Full bank statement pages showing proceeds received.
– Any tax withholding statements tied to the transaction.
Formatting requirements:
– Keep the signed agreement, proof of payment, and the matching bank statement in one combined PDF.
Common issues:
– Only the contract is saved, not the proof of funds received on a specific date, which later affects Holding periods and timing questions.
Arrival in India: first-year India-side document readiness
Your accountant will ask for quick answers once Indian filing begins and foreign asset disclosure becomes relevant.
Collect:
– PAN and updated KYC records with current address.
– A foreign assets list with account numbers masked, institution names, and peak balances if you track them.
– Proof of taxes paid abroad for the income that overlaps the return year.
Common issues:
– People don’t track peak balances and scramble later.
– Residency day counts are not tied to passport stamps, weakening Tax residency history support.
Translation, notarisation, and record quality rules
- Translation: Translate any key document not in English (sale deeds, registry extracts, legal agreements). Use a professional translator and keep the translator’s certificate page with the document.
- Notarisation/apostille: If an Indian bank, court, or authority asks for authenticated foreign documents, start early; getting apostilles can take time depending on the issuing country.
- Consistency checks: Names must match across passports, bank records, and tax filings. Fix differences before return where possible.
Important: start early. Document retrieval times vary by country and institution. Missing or inconsistent records are the main cause of delays with banks, accountants, and tax audits.
Fast “document triage” list to prevent delays
Keep these items ready to email as PDFs within 24 hours:
- Passport ID page + travel stamp pages
- Last 6 years of tax returns
- Top 20 asset/investment statements with acquisition proofs
- Retirement plan statements + plan rules
- Proof of large transfers and source of funds
- A one-page timeline of Immigration and exit status changes (visa types and dates)
If you treat this as a document project tied to Tax residency history, Holding periods, and Immigration and exit status, you’ll cut down on last-minute scrambling and reduce the risk of avoidable compliance shocks.
Moving back to India is a long-term documentation project involving tax residency history and holding periods. Expats should build a document vault five years prior, collecting identity proof, tax returns, and asset inventories. Organizing official PDFs of acquisition costs and immigration and exit status prevents major compliance issues. Success depends on early preparation, professional translations, and maintaining a clear paper trail for Indian banks and tax authorities.
