One of the most common questions returning NRIs have during their RNOR period is whether they need to start reporting their overseas bank accounts, brokerage accounts, or property to the Income Tax Department. The answer is no.
This article explains exactly why, what the law says, and what you need to know for when this exemption ends.
Table of Contents
- Do I need to disclose foreign assets while I am classified as an RNOR in India?
- Do I need to disclose foreign income while I am classified as an RNOR in India?
- Further Reading
- About Paasa
Do I need to disclose foreign assets while I am classified as an RNOR in India?
No. As an RNOR, you are not required to fill Schedule FA in your ITR.
Schedule FA is where Ordinary Residents list every foreign asset they hold during the financial year. This includes overseas bank accounts, brokerage accounts, RSUs and ESOPs, property abroad, and any stake in a foreign entity. Since you are not yet a full Ordinary Resident, this requirement does not apply to you.
The Black Money Act, which penalises Ordinary Residents for not disclosing foreign assets, does not cover RNORs either.
What happens when my RNOR period ends?
The moment you become an Ordinary Resident, Schedule FA becomes mandatory. You will need to list every foreign asset you hold, including assets that generated zero income during the year. To understand how long your RNOR period lasts and when the transition happens, read our guide on Resident vs RNOR vs Non-Resident.
Do I need to disclose foreign income while I am classified as an RNOR in India?
No. Schedule FSI (Foreign Source Income) does not apply to RNORs either.
Schedule FSI is only for Ordinary Residents. Since you are not yet a full Ordinary Resident, you are not required to report any income sourced and received outside India.
Note: Foreign income received directly into an Indian bank account is treated differently. If your overseas income is being credited to India directly, consult a qualified tax advisor for your specific situation.
Common questions
I am RNOR this year but will become ROR in the next financial year. Do I need to disclose assets I held during my RNOR period in my first ROR year?
You will only need to disclose all foreign assets you hold as of your first ROR year. One important thing to note here is that Schedule FA follows the calendar year (January to December), not the Indian financial year (April to March). So for example, if you file your ITR for AY 2026-27 as an ROR, you will need to disclose all foreign assets held between January 1, 2025 and December 31, 2025, not April 2025 to March 2026.
Do I still need to file an ITR while I am RNOR?
Yes, if your India-sourced income exceeds the basic exemption limit. Your RNOR status affects what you report in your return, not whether you need to file one at all.
Does the Black Money Act apply to me as an RNOR?
No. The Black Money Act applies only to Ordinary Residents. This changes the moment you transition to ROR.
Further Reading
Understanding RNOR
- Resident vs RNOR vs Non-Resident: What is the Difference?
- How Returning NRIs (RNOR) Should Structure Equity and RSUs
Returning to India: Country-Specific Guides
- A Guide for NRIs Returning to India from the US
- A Guide for NRIs Returning to India from the UAE
- A Guide for NRIs Returning to India from Singapore
- A Guide for NRIs Returning to India from the UK
- A Guide for NRIs Returning to India from Canada
- A Guide for NRIs Returning to India from Germany
- A Guide for NRIs Returning to India from Australia
About Paasa
Paasa is a global investing platform built for Indian residents and returning NRIs. Paasa can help you reset your cost basis, restructure your foreign portfolio, and file taxes correctly.
- Hold and trade globally through your RNOR period: Access 10+ exchanges including the US, UK, Germany, Singapore, and Hong Kong, all from a single account held in your name at Interactive Brokers.
- Seamless in-kind transfers: Move your existing portfolio from Schwab, Fidelity, Robinhood, E*TRADE and other brokerages to Paasa without triggering a taxable event, so you stay invested through the transition.
