The basic tests
You are resident in India for a tax year if either:
- you are in India for 182 days or more in the year; or
- you are in India for 60 days or more in the year and 365 days or more in the four preceding years.
Otherwise you are a non-resident. These tests carried over unchanged into the Income-tax Act, 2025.
Special rules for Indians working abroad or visiting
- For an Indian citizen leaving India for employment abroad (or as ship’s crew), the 60-day test doesn’t apply — only 182 days counts.
- For an Indian citizen or person of Indian origin visiting India, the same relief applies — unless their Indian income exceeds ₹15 lakh. Then the 60 days becomes 120 days (with 365 days in the four preceding years).
Deemed residents
An Indian citizen with Indian income above ₹15 lakh who isn’t liable to tax in any other country because of domicile or residence is treated as resident in India — typically people living in countries with no personal income tax. A deemed resident is treated as RNOR.
RNOR: the returning NRI window
A resident is Resident but Not Ordinarily Resident (RNOR) if any one of these applies:
- non-resident in 9 of the 10 preceding years; or
- in India for 729 days or less in the 7 preceding years; or
- resident only because of the 120-day rule; or
- a deemed resident.
An RNOR is generally taxed only on Indian income (and income from a business controlled from India), so returning NRIs often have one or more years to plan the move of foreign assets.
Why it matters
| Status | What India taxes | Foreign assets schedule |
|---|---|---|
| Resident and ordinarily resident | Worldwide income | Required |
| RNOR | Mainly Indian income | Not required |
| Non-resident | Indian income only | Not required |
Status also affects bank accounts (NRE/NRO), investment rules under FEMA and treaty claims. Next: NRI income tax return · NRI tax services.
Rates and slabs: income tax for NRIs in India — slabs, TDS and DTAA.
Frequently asked questions
How many days can an NRI stay in India?
What is RNOR status?
What is a deemed resident?
Did the Income-tax Act 2025 change residential status rules?
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.