# NRI Residential Status Determination

> You are resident in India for a year if you are in India for 182 days or more, or for 60 days or more and 365 days or more in the four preceding years. For Indian citizens and PIOs visiting India whose Indian income exceeds ₹15 lakh, the 60-day limb becomes 120 days. Citizens with Indian income above ₹15 lakh who aren't taxed in any other country are deemed resident. Residents who meet the RNOR tests are taxed like NRIs on foreign income.

Practice: NRI Tax Services — https://www.industax.com/services/nri-tax/

Residential status decides what India can tax: NRIs and RNORs pay Indian tax only on Indian income, while ordinarily residents (ROR) are taxed on worldwide income and must disclose foreign assets. It is decided afresh every financial year, from your passport stamps and travel records.

Two exceptions catch many people. Indian citizens leaving for employment abroad are tested only on the 182-day rule in the year they leave. And the 120-day rule and deemed-residency rule — which apply when Indian income exceeds ₹15 lakh — make you RNOR rather than ROR.

For FY 2025-26 the tests are in section 6 of the 1961 Act; from tax year 2026-27 the Income-tax Act, 2025 carries the same framework under renumbered provisions. We count your days, apply the right tests and document the conclusion for your ITR and for banks.

## Key facts

| Item | Detail |
| --- | --- |
| Basic test | 182 days or more in India in the year |
| Second test | 60 days + 365 days in the preceding 4 years |
| Citizens/PIOs visiting, Indian income > ₹15 lakh | 60 days becomes 120 days → RNOR |
| Deemed resident | Citizen with Indian income > ₹15 lakh not taxed elsewhere → RNOR |
| RNOR tests | NR in 9 of 10 preceding years, or ≤ 729 days in India in preceding 7 years |

## Who needs this

- NRIs who spent long periods in India this year
- People moving abroad or returning to India
- NRIs with Indian income above ₹15 lakh
- Employees on international assignments

## What's included

- Day count from passport and travel records
- Application of all residency tests and exceptions
- RNOR assessment for returning NRIs
- Written status note for ITR, banks and DTAA claims

## Documents

- Passport pages with entry/exit stamps or travel history
- Indian income details
- Employment contract (if moving for work)
- Tax residency certificate of the other country (if any)

## Process

1. **Count** — Days in India for the year and look-back years.
2. **Test** — All residency tests and exceptions applied.
3. **Conclude** — Status documented with reasons.

## FAQs

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

Generally under 182 days, provided the 60-day/365-day test isn't met; for citizens and PIOs with Indian income above ₹15 lakh, the 60-day limb is 120 days. Your history over the previous four years matters.

### What is a deemed resident?

An Indian citizen whose Indian income exceeds ₹15 lakh and who is not liable to tax in any other country because of domicile or residence. Deemed residents are treated as RNOR.

### Is residential status the same for FEMA and income tax?

No. FEMA uses a different test based on purpose and intention of stay; you can be an NRI under one law and not the other.

## Official sources

- Income Tax Department — residential status calculator: https://incometaxindia.gov.in/
- Income Tax e-Filing portal: https://www.incometax.gov.in/

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Canonical page: https://www.industax.com/services/nri-tax/nri-residential-status
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.