Residential status: resident, RNOR and non-resident
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Updated 03 Oct 2026
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AI summary
The day-count tests, the RNOR middle status, and why status decides what income is taxed in India.
4 sections 2 steps
Why it matters
- Resident: taxed on worldwide income.
- Resident but not ordinarily resident (RNOR): taxed on Indian income and income from a business controlled in India.
- Non-resident: taxed only on income received, accruing or arising in India.
The basic tests for an individual
You are resident in a tax year if either is true:
- You were in India for 182 days or more in the year, or
- You were in India for 60 days or more in the year and 365 days or more in the 4 years before.
Special cases
- For an Indian citizen leaving for employment, or crew of an Indian ship, only the 182-day test applies.
- For an Indian citizen or person of Indian origin visiting India, the 60 days becomes 120 days if Indian income (excluding foreign sources) is more than ₹15 lakh.
- An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any other country is treated as a deemed resident (RNOR).
RNOR in brief
A resident is RNOR if they were non-resident in 9 of the 10 previous years, or were in India for 729 days or less in the previous 7 years (plus the special ₹15 lakh cases above).
Keep passport stamps and travel dates. Day counts are the first thing checked in any NRI scrutiny.
Sources
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