Which law applies
From the tax year that started on 1 April 2026, residence is decided under section 6 of the Income-tax Act, 2025. Earlier years stay under the Income-tax Act, 1961. The day-count tests are the same in both. India’s tax year runs from 1 April to 31 March.
Step 1: are you resident at all?
You are resident in a tax year if either is true:
- You are in India for 182 days or more in the year; or
- You are in India for 60 days or more in the year and 365 days or more in the four years before it.
Two changes to test 2 matter to NRIs:
- If you are an Indian citizen or a person of Indian origin (including OCI) coming on a visit to India, 60 days becomes 182 days. If your Indian income (income other than from foreign sources) is over ₹15 lakh, it becomes 120 days instead.
- If you are an Indian citizen who leaves India in the year for a job abroad (or as ship crew), 60 days also becomes 182 days.
Step 2: if resident, are you “not ordinarily resident”?
A resident is RNOR if any one of these is true:
- You were a non-resident in 9 out of the 10 tax years before this one; or
- You were in India for 729 days or less in the 7 tax years before this one; or
- You are resident only because of the 120-day rule above; or
- You are a deemed resident (below).
Everyone else who is resident is Resident and Ordinarily Resident (ROR), taxed on worldwide income.
Deemed residents
An Indian citizen whose Indian income is over ₹15 lakh, and who is not liable to tax in any other country because of domicile or residence, is treated as resident even without enough days in India. A deemed resident is always RNOR. This catches people living in countries with no income tax.
Why RNOR is worth planning for
- As an RNOR you are generally taxed in India on Indian income, and on foreign income only if it comes from a business controlled or a profession set up in India. Income earned and received abroad is generally outside Indian tax.
- That makes RNOR years a common time to sell foreign investments, receive bonuses or close accounts, after advice in both countries.
- Once you become ROR you must report foreign assets in your Indian return, and foreign income becomes taxable in India (with relief under the tax treaty where tax is paid abroad).
How long will I be RNOR?
For someone who lived abroad for ten years or more and visited India for a few weeks a year, the 9-of-10 test usually gives two tax years as RNOR after the year of return, sometimes three. The 729-day test can stretch it if your visits were short. The exact answer depends on the month you land. Our calculator works it out year by year.
Worked example
Priya has lived in the US since 2012, visiting India for about 30 days each year. She moves back on 1 July 2026.
- 2026-27: she spends about 274 days in India, so she is resident. She was non-resident in all 10 previous years, so she is RNOR.
- 2027-28: resident. Non-resident in 9 of the previous 10 years, so still RNOR.
- 2028-29: resident. Non-resident in 8 of the previous 10. Her days in the previous 7 years are about 5 x 30 + 274 + 365 = 789, more than 729. So she becomes ROR.
Practical tips
- Keep a travel log with passport stamps and boarding passes. Days in India include the day you arrive and the day you leave in most readings; ask your adviser.
- Tell your bank you have become resident: your NRE and NRO accounts must be redesignated. See bank accounts when you return.
- US citizens and green card holders keep filing US returns while living in India, including foreign account and asset reports, and should get advice on both systems.
- Use the tax treaty. India has double taxation avoidance agreements (DTAAs) with most countries, including the US, UK, Canada, UAE, Singapore and Australia.
Sources: Income Tax Department, Residence in India for the purpose of Income Tax and the e-filing portal’s non-resident FAQ (Income-tax Act, 2025), checked 21 October 2026. This is general information, not tax advice; confirm your position with a chartered accountant.
