Key points
- Status is decided each tax year (April–March) from your days in India.
- 182 days in India makes anyone resident. For Indian citizens and PIOs, the 60-day test becomes 182 days, or 120 days if Indian income is above ₹15 lakh.
- Citizens with Indian income above ₹15 lakh who pay no tax anywhere else are deemed resident, but stay RNOR.
- NRIs and RNORs pay Indian tax only on Indian income.
How residential status works for NRIs
Your residential status decides what India can tax. It's worked out fresh every tax year from the days you spend in India. It doesn't depend on your passport, visa or bank account type. Under the Income-tax Act, 2025 the rules are in section 6, and they're largely the same as under the old 1961 Act.
Step 1: Are you resident?
You're resident in India for a tax year if either of these applies:
- You're in India for 182 days or more in the year, or
- You're in India for 60 days or more in the year and 365 days or more in the four years before it.
Indian citizens and Persons of Indian Origin get relief from the 60-day test:
| Your situation | The 60-day test becomes… |
|---|---|
| Citizen leaving India this year for employment abroad (or as crew of an Indian ship) | 182 days |
| Citizen or PIO visiting India, Indian income up to ₹15 lakh | 182 days |
| Citizen or PIO visiting India, Indian income above ₹15 lakh | 120 days (still with 365 days in the previous 4 years) |
Step 2: The deemed-resident rule
An Indian citizen with Indian income above ₹15 lakh who isn't liable to tax in any other country is treated as resident, even with zero days in India. This mainly affects people living in no-income-tax countries such as the UAE. Deemed residents are always RNOR, so their foreign income stays outside Indian tax.
Step 3: If resident, are you RNOR or ROR?
A resident is Resident but Not Ordinarily Resident (RNOR) if any of these apply:
- non-resident in 9 of the previous 10 tax years, or
- in India for 729 days or fewer in the previous 7 tax years, or
- resident only because of the 120-day rule, or
- a deemed resident.
Everyone else who is resident is Resident and Ordinarily Resident (ROR).
What each status means for your tax
| Status | Indian income | Foreign income |
|---|---|---|
| NRI (non-resident) | Taxed | Not taxed |
| RNOR | Taxed | Not taxed, unless from a business controlled in or a profession set up in India |
| ROR | Taxed | Taxed, with credit for foreign tax paid |
Example
Priya is an Indian citizen working in Dubai. She spends 130 days in India this tax year and spent 400 days in India over the previous four years. Her Indian rental and interest income is ₹18 lakh.
Because her Indian income is above ₹15 lakh, the 120-day test applies, so she's resident. Because she became resident only through the 120-day rule, she's RNOR, and her Dubai salary stays outside Indian tax. At 115 days she would have stayed an NRI.
Frequently asked questions
Is residential status based on the calendar year?
Do arrival and departure days both count?
I'm an NRI under FEMA. Am I automatically an NRI for income tax?
Does an OCI card holder count as a Person of Indian Origin?
Does the ₹15 lakh limit include my foreign salary?
I live in the UAE and pay no income tax. Will I become a deemed resident?
Read next
- Income-tax Act 2025: what changes for NRIs
- NRE vs NRO accounts: how each is taxed
- Do NRIs need to file a tax return in India?
A chartered accountant who works with NRIs can get a lower-TDS certificate, file your return and handle repatriation paperwork.
Sources
Important: This calculator gives an estimate based on the Income-tax Act, 2025 as we understand it on 25 October 2026. It doesn't replace advice from a chartered accountant. See our disclaimer.