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Residential status: am I an NRI for tax?

Your tax status in India is worked out each tax year from the days you spend here, not from your passport or visa. It decides whether India can tax only your Indian income or everything you earn worldwide.

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The two tests that make you a resident

You are a resident of India for a tax year (1 April to 31 March) if either is true:

  1. You are in India for 182 days or more in the year; or
  2. You are in India for 60 days or more in the year and 365 days or more in the four years before it.

If neither applies, you are a non-resident for that year. The rules sit in section 6 of the Income-tax Act, 2025, which kept the old section number.

The 60-day test does not apply to most NRIs

For an Indian citizen or a person of Indian origin who lives abroad and comes on a visit, and for a citizen who leaves India for a job abroad or as a ship's crew member, the 60 days in the second test become 182 days. So the usual limit for an NRI is simple: stay under 182 days a year.

Your Indian income (leaving out foreign income)You become a resident if you stay
₹15 lakh or less182 days or more in the year
More than ₹15 lakh182 days or more, or 120 days or more plus 365 days in the previous four years (then only "not ordinarily resident")

Deemed residents: citizens with no tax home

An Indian citizen whose Indian income is more than ₹15 lakh, and who is not liable to tax in any other country because of residence or domicile, is treated as a resident of India however few days they spend here. This catches people who move between countries, or live where they are not tax residents. A deemed resident is "resident but not ordinarily resident", so foreign income stays outside Indian tax.

Resident but not ordinarily resident (RNOR)

A resident is "not ordinarily resident" in a year if they were a non-resident in 9 of the previous 10 years, or spent 729 days or fewer in India over the previous 7 years. The 120-day and deemed-resident cases above are also RNOR.

  • What it means: income earned abroad is still not taxed in India, unless it comes from a business controlled or a profession set up in India. Indian income is taxed as for a resident.
  • Why it matters when you return: most people moving back after many years abroad are RNOR for two or three years, which gives time to wind down foreign income and accounts. FCNR deposits stay tax-free in India while you are RNOR.

Tax status and bank status are different tests

Your NRE, NRO and FCNR accounts depend on FEMA, the foreign exchange law, not on income tax. Under FEMA you are a non-resident once you leave India to work, do business or live abroad for an uncertain period, from the day you leave. Under income tax you are judged on days in the whole year. In the year you move, you can be an NRI for your bank and a resident for tax, or the other way round.

The tax status decides how your income is taxed: see income tax for NRIs. The FEMA status decides which accounts you may hold: see NRE, NRO and FCNR rates.

Frequently asked questions

How many days can an NRI stay in India without becoming a resident?

Up to 181 days in a tax year (April to March), if your Indian income, leaving out foreign income, is ₹15 lakh or less. If it is more than ₹15 lakh, staying 120 days or more in the year, together with 365 days over the previous four years, makes you a resident, though only "not ordinarily resident".

Do the day and the night of travel count?

Any day you are in India for part of the day is usually counted, including the day you arrive and the day you leave. Keep your passport stamps and boarding passes; they are the evidence if your status is questioned.

I have no tax residence anywhere. Can I be taxed as a resident of India?

Yes, if you are an Indian citizen, your Indian income is more than ₹15 lakh, and no other country taxes you as a resident because of where you live or are domiciled. You are then a deemed resident of India, treated as resident but not ordinarily resident.

Is my NRI status for my bank account the same as for tax?

No. NRE and NRO accounts follow FEMA, the foreign exchange law, which looks at whether you have left India for work or to live abroad indefinitely. The income tax test counts days. You can be a non-resident for one and a resident for the other in the same year.

What should I do with my NRE and NRO accounts when I return to India?

Tell your bank once you return for good. NRE and NRO accounts are converted to resident accounts, or the money can move to an RFC account to stay in foreign currency. FCNR deposits can run until they mature.

Sources

Last checked on 13 October 2026. This is a general guide, not tax advice. Day counts near the limits are worth checking with a chartered accountant.