International Tax
RNOR (Resident But Not Ordinarily Resident)
A transitional residency status for individuals who have recently returned to India after being NRIs.
Full Definition
Resident But Not Ordinarily Resident (RNOR) is a transitional tax status between NRI and full Resident. RNOR applies if you are a 'Resident' by day-count test but have been an NRI in 9 out of 10 preceding years, or have been in India for 729 days or less in the preceding 7 years. RNORs pay Indian tax on India-source income and income from a business controlled in India — but NOT on foreign income (same as NRIs). RNOR status typically lasts for 2-3 years after returning to India.
More International Tax terms
NRI (Non-Resident Indian)
An Indian citizen residing outside India for more than 182 days in a financial year.
DTAA (Double Taxation Avoidance Agreement)
Bilateral treaty between India and another country preventing the same income from being taxed twice.
FEMA (Foreign Exchange Management Act)
Indian law governing foreign exchange transactions, cross-border investments and NRI account operations.
LRS (Liberalised Remittance Scheme)
RBI scheme allowing resident individuals to remit up to USD 250,000 per year abroad for permitted purposes.
NRE Account (Non-Resident External)
Bank account in India for NRIs holding foreign earnings converted to INR — interest is tax-free.