Growth CircleAre You an NRI for Tax Purposes? Residential Status Explained
How India decides whether you are resident or non-resident for tax: the 182-day test, the 120-day rule for higher incomes and deemed residency.
Whether you are an NRI for Indian tax depends on your stay in India, not simply on your passport or where you work. Your status decides what India can tax: a non-resident is taxed on income from India, while a resident is taxed on worldwide income.
The basic tests
- 182 days or more in India during the year makes you a resident.
- 60 days or more in the year, together with 365 days or more in the four preceding years, also makes you a resident.
Extra rules for Indian citizens and persons of Indian origin
- If you are an Indian citizen or person of Indian origin who is visiting India, and your Indian income is more than ₹15 lakh, the 60-day test is replaced with a 120-day test. Meeting it can make you a resident, but generally a resident who is not ordinarily resident (RNOR).
- An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country may be treated as a deemed resident, again usually as RNOR.
Why RNOR matters
RNOR is a transition category. Income earned and received outside India is generally not taxed in India for an RNOR. It also matters when you return to India permanently.
What to do
- Keep a record of your days in India each year, using passport stamps and travel tickets.
- Check your Indian income against the ₹15 lakh threshold.
- Recheck your status every year, especially in a year with a long India stay or a move.
These tests were carried into the Income-tax Act, 2025, which applies from 1 April 2026. Rules and thresholds can change, and your facts matter, so confirm your position before filing.
Need help with this? See our NRI Services or book a consultation. This article is general information, not advice for your specific situation.
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