For many non-resident Indians, life abroad eventually collides with the reality of ageing parents back home. What begins as long-distance concern often turns into a life-changing decision to pack up overseas and relocate to India.
According to the Back to India NRI Community Survey (2025-26), 74% of respondents listed ageing parents among their top three reasons for returning home. But the move requires careful financial planning—from navigating medical expenses and lower salaries to managing cross-border taxes and overseas assets.
Cost of care
Many returnees say their physical presence has significantly improved their parents' well-being.
Chetna Kaushik, a 35-year-old project manager who moved back to India five years ago to support her parents, has experienced this firsthand. She managed her mother's cataract surgery locally and now oversees her monthly blood pressure and heart medication routine.
"Parents become sicker as they get lonelier," Kaushik observed. "Moving back brought them a great deal of mental support. The cost of caring for parents has definitely reduced a great deal with me being present; I can research the nearest and budget-friendly hospitals. Living with them makes it easier to curate their daily meals and ensure they are healthier and more active."
The UNFPA India Ageing Report (2023) says nearly one in three elderly Indians lives with an ongoing health condition. Health insurance policies may fail to cover the full care in some cases, forcing families to pocket high costs.
Soon after Kalyan Kumar Biswal, a 34-year-old wealth manager and content creator, returned from Canada to Mumbai five years ago, his father was diagnosed with stage-two lymphoma. Despite having health insurance, the financial burden was significant.
"Insurance doesn't cover everything: consumables, doctor's visits, and several other expenses came out of pocket," Biswal recalled as his father underwent 12 cycles of chemotherapy. "Moving back does take a hit on your income, but the bigger blow is medical expenses for ageing parents. Parents' expenses only go up as they age; that is just reality. Annual medical checkups, quality food, and health insurance together take up roughly 10-20% of my income."
Nilesh Khare, an educator and corporate trainer who returned to India in 2017 after spending 13 years in the UAE and the US, said even when parents have pensions and insurance, monthly pharmacy bills often remain uncovered.
"Parents are capable of managing this cost, but usually my siblings or I pay the bills," he added.
For Manoj Varghese, a 45-year-old health information manager currently based in Kuwait, supporting ageing parents is one of the biggest reasons for planning his return.
"Need to support my parents during their tough times and to maintain the assets that we have in India. To me, homeland is healthier than Gulf countries. Unlike other countries, in Kuwait we can never be a citizen of this country. We cannot own land or an apartment in Kuwait. So the move back to India is more practical about insurance, cost of living, and other things."
Income reset
Returning professionals often have to accept significantly lower salaries.
Khare, who relocated to Bhopal when his father turned 75, said: "There is certainly a compromise professionally and financially if you relocate to a Tier-2 or Tier-3 city where matching opportunities do not exist."
"Income may drop to one-third or one-fourth of your potential in metros."
To cushion the impact, Khare and his wife built independent income streams through executive coaching, advisory work and online teaching.
Kaushik faced a similar reality. "I was aware money will be tight. I started at roughly one-third of my original salary, but I was determined to make it work."
Through freelancing and a job switch, it took her three years to rebuild her monthly income to 50-60% of what she earned abroad.
"The calm of coming back home and sleeping next to my parents kept me going."
Khare echoed that sentiment. “Parents' trust in us has gone up, along with their confidence in life itself. Overall, I am very satisfied with my decision to relocate.”
Tax transition
Relocating to India involves navigating financial and legal regulations. Moving money, handling overseas assets, and maintaining tax compliance require careful and early preparation.
Sidhant Agarwal, CA and founder of cross-border advisory firm India For NRI, said the date of arrival in India triggers compliance under both the Foreign Exchange Management Act (FEMA) and the Income Tax Act.
"FEMA works on intention," Agarwal explained. "As per FEMA, you become an Indian resident as soon as you arrive in India with an intention to stay. On day one, you must comply with RBI requirements, redesignate all NRE and NRO bank accounts to resident savings accounts, and notify financial institutions."
Returning NRIs may also qualify for Resident but Not Ordinarily Resident (RNOR) status. If eligible, they are taxed only on Indian-sourced income for up to two to three years, while foreign income, overseas salaries and retirement funds remain outside India's tax net during the transition.
"There is no practical case where someone moves back with zero foreign accounts or foreign assets," Agarwal noted. "The biggest question people have is whether foreign salaries or retirement funds like US 401(k)s will be double-taxed. RNOR status protects foreign earnings during the initial transition period."
He recommended beginning the planning process three to four months before relocating.
Those returning from the US should file Form W-8BEN with financial institutions after departure to establish their non-resident alien tax status, while returnees from the UK must complete their exit tax formalities.
Agarwal also advised setting up a Power of Attorney before leaving, liquidating overseas real estate that would be difficult to manage from India, and reviewing foreign retirement accounts during the RNOR period to avoid unnecessary tax costs later.
Plan ahead
Financial planners advise against making large investment decisions immediately after returning.
Vishal Dhawan, CFP and co-founder of Sebi-registered investment advisor Plan Ahead Wealth Advisors, recommended preserving flexibility.
"Focus on flexibility during this phase, especially since the reverse migration may not be permanent for some."
Speaking of assets and investments abroad, Vishal called for planning to start six months to a year ahead of the move as, “There might be certain implications in terms of how you deal with it with your taxes, what kind of declarations you make. So this needs to happen in advance; typically coordinating with your planner and tax advisor is going to be very critical."
When relocation happens unexpectedly, liquidity becomes the priority.
Thomas Kaduthanam, founder and chief executive officer of MSherpa, said returnees: "Need to have maybe six months of expenses as backup to absorb sudden income drops and medical outlays."
Ultimately, experts say a successful return requires more than an emotional decision. Auditing overseas assets, planning taxes well in advance and maintaining adequate liquidity can help NRIs care for their ageing parents without compromising their own long-term financial security.