Your tax liability in India depends far more on your residential status than on your citizenship or passport. NRI residential status is decided each year by counting the days you spend in India, with a few special rules for Indian citizens, persons of Indian origin and those with significant Indian income. Get the status right, and everything else, from which income is taxable to which return form applies, falls into place.
This guide explains the day-count tests, the 120-day and deemed resident rules, the resident but not ordinarily resident (RNOR) category, and how to plan visits sensibly. The rules are the same in substance under the Income-tax Act 2025, which applies from the 2026-27 tax year.
Key takeaways
- You are resident in a tax year if you are in India for 182 days or more, or for 60 days or more in the year and 365 days or more in the four preceding years.
- For Indian citizens leaving India for employment (or as crew), and for Indian citizens and persons of Indian origin visiting India, the 60-day limb is replaced with 182 days.
- If such a visitor’s Indian income (excluding foreign-source income) exceeds ₹15 lakh, the 60-day limb becomes 120 days, and a resident under this rule is treated as RNOR.
- An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country is deemed resident (as RNOR).
- A non-resident is taxed in India only on income that arises, accrues or is received in India.
Why residential status matters
- Residents and ordinarily residents (ROR) are taxed in India on worldwide income and must report foreign assets.
- Resident but not ordinarily resident (RNOR) individuals are taxed broadly on Indian income, plus foreign income from a business controlled or profession set up in India.
- Non-residents (NR) are taxed only on Indian-source income or income received in India.
The status is determined separately for each tax year (1 April to 31 March). Under the Income-tax Act 2025, the “tax year” replaces the old previous year and assessment year concepts; our explainer on the tax year concept covers this change.
The basic NRI residential status tests
An individual is resident in India for a tax year if either condition is met:
- Present in India for 182 days or more in the year; or
- Present in India for 60 days or more in the year and for 365 days or more in the four immediately preceding years.
If neither is met, the individual is a non-resident. Days of arrival and departure are generally both counted as days in India, so keep a precise travel log.
Exceptions to the 60-day limb
| Person | Second test becomes |
|---|---|
| Indian citizen leaving India for employment abroad, or as a crew member of an Indian ship | 182 days (so only the 182-day test effectively applies) |
| Indian citizen or person of Indian origin visiting India, Indian income up to ₹15 lakh | 182 days |
| Indian citizen or person of Indian origin visiting India, Indian income above ₹15 lakh | 120 days, with 365 days in the preceding four years |
“Indian income” here means total income other than income from foreign sources.
Deemed residency for Indian citizens
An Indian citizen whose Indian income exceeds ₹15 lakh and who is not liable to tax in any other country because of domicile, residence or a similar criterion is deemed to be resident in India, regardless of the number of days spent here. Such a person is treated as RNOR, so foreign income generally remains outside the Indian tax net.
This rule mainly affects individuals living in countries that do not levy personal income tax. If this applies to you, keep evidence of your tax position abroad and review your Indian income each year.
RNOR: the helpful middle category
A resident individual is RNOR if either:
- They were non-resident in 9 out of the 10 preceding years; or
- They were in India for 729 days or less in the preceding 7 years.
In addition, individuals who become resident only because of the 120-day rule, and those who are deemed resident, are treated as RNOR.
RNOR status is particularly useful for returning NRIs. It often provides one to three years in which foreign income, such as interest on overseas deposits or rent from a property abroad, is not taxed in India, giving time to restructure overseas assets.
Worked examples
Example 1: frequent visitor with modest Indian income. Ravi, an Indian citizen working in Dubai, spends 150 days in India in the 2026-27 tax year. His Indian income is ₹6 lakh. Because he is a visiting citizen with Indian income below ₹15 lakh, the 60-day limb is replaced by 182 days. At 150 days, he is a non-resident.
Example 2: visitor with significant Indian income. Meera, a person of Indian origin living in Singapore, spends 130 days in India. Her Indian income from rent and capital gains is ₹22 lakh, and she was in India for 400 days in the preceding four years. The 120-day limb applies, and she meets it, so she is resident but treated as RNOR.
Example 3: returning NRI. Arjun moves back to India permanently in June 2026 after 12 years abroad. He is resident for 2026-27 (over 182 days), but having been non-resident in at least 9 of the previous 10 years, he is RNOR for the year.
Practical tips for NRIs
- Track days carefully: use passport stamps, boarding passes and a simple spreadsheet. Differences of a few days can change the status.
- Estimate Indian income early in the year if you plan long visits, to see whether the ₹15 lakh threshold may be crossed.
- Update your bank status: once you become resident, NRE and FCNR accounts need to be redesignated under FEMA rules, which are separate from tax residence.
- Check the treaty: if you are resident in both India and another country, the tie-breaker rules in the relevant DTAA decide where you are treated as resident for treaty purposes.
- Choose the right return: residential status determines the return form and schedules, including foreign asset reporting for ROR individuals. See our overview of key changes under the Income-tax Act 2025.
Frequently asked questions
Is residential status based on the calendar year?
No. It is based on the Indian tax year, which runs from 1 April to 31 March.
Do the arrival and departure days count?
Generally yes. Both the day of arrival and the day of departure are usually treated as days of presence in India.
Does the ₹15 lakh threshold include foreign income?
No. It refers to total income other than income from foreign sources, such as Indian salary, rent, interest and capital gains.
Did the Income-tax Act 2025 change the residence rules?
The substance of the tests, including the 120-day and deemed resident rules, was carried forward. Terminology changed, with the tax year replacing the previous year.
If you are an NRI planning your visits or returning to India and want clarity on your residential status, we would be glad to help you work it out.
This article is general information based on the law as of September 2026, and is not legal or tax advice. Please check the facts of your own case with a professional before acting.
