Residential status for Non-Resident Indians (NRIs) in India is primarily determined by the number of days spent in the country during a financial year (April 1 to March 31) under the Income Tax Act, 1961. An individual is considered an NRI if they spend less than 182 days in India during the financial year, or less than 60 days in the current year and less than 365 days over the preceding four years.
An individual is considered a tax resident in India if they stay for 182 days or more in a tax year. This remains the primary criterion for determining residency. If an individual stays for fewer than 182 days in India, they will continue to be classified as an NRI.
An individual would be resident in India if he stays for 182 days or more in India during the previous year or if he stays for 60 days during the previous year and 365 days in the 4 years preceding previous year. If an individual fails to satisfy the above conditions, he will be considered as a non-resident in India.
You can convert your NRI demat account to a resident demat account by submitting application forms, identity documents, address and bank proof along with a ₹500 fee. The conversion takes up to 7 working days, during which your Kite access is temporarily suspended, though you can view holdings through CDSL Easi.
If an individual stays in India for 182 days or more during the current financial year. If the individuals are present in India for 60 days or more during the relevant FY and 365 days or more in the previous 4 years, they will be considered residents.
If you fail to declare your NRI status and are treated as a resident, your global income may be taxed in India. Non-disclosure could lead to: Penalties under Section 271F: A fine of ₹10,000 for failure to file an Income Tax Return (ITR). Interest under Section 234A/B/C: For delay in filing or paying advance tax.
The "90-day rule" for non-residents typically refers to two different concepts: in U.S. immigration, it's a guideline for determining if a non-immigrant misrepresented their intent by engaging in certain activities (like unauthorized work or immediate marriage) within 90 days of arrival, leading to visa fraud or inadmissibility. In Canadian tax law, the 90% rule allows non-residents to claim full federal tax credits if 90% or more of their world income is from Canadian sources, otherwise, credits are prorated.
New rules for NRIs in India focus on stricter tax residency criteria from April 2026, increasing the stay threshold to 120 days for high-income NRIs (over ₹15 lakh Indian income) to become Resident but Not Ordinarily Resident (RNOR) and introducing "deemed residency" for high-income Indians in tax havens; also, higher TCS thresholds for LRS remittances (to ₹10L) and removal of TCS for education loans are recent changes from Budget 2025-26, alongside increased reporting of foreign assets.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
Communication Address Proof (Any one):
Therefore, evidence that the LPR has abandoned residency can include the following: extended or frequent absences from the United States; disposing of property or terminating a job in the United States before leaving; family, property, or business ties all located abroad; certain conduct while outside the United States ...
According to the regulations stipulated in the Foreign Exchange Management Act (FEMA) and the directives from the Reserve Bank of India (RBI), NRIs have the eligibility to purchase both residential and commercial properties in India. Additionally, NRIs can avail themselves of home loans for these acquisitions.
With the recent changes in the Indian Income Tax Act, it's now possible to pay zero tax on a salary of up to Rs. 7 lakhs. To pay zero tax on a 7 lakh salary using the old tax regime, maximize deductions: Claim Tax Rebate under Section 87A.
If you hit 182 days or more, you meet the resident test immediately. Next, it checks the 60-day plus 365-day condition (or 182-day plus 365-day if you qualify for the substitution). It adds up your days from the four preceding years to see if you cross 365 days.
NRI days calculator
So, deriving from that, an NRI is one who is: Present in India for less than 182 days during that fiscal year, or. Present in India for less than 60 days during that fiscal year and cumulatively 365 days or less during the preceding four fiscal years.
In case you are an Indian citizen, and you leave India for employment outside of India, or as a member of the crew on an Indian ship, your status will be a Non-Resident Indian (NRI) if you stay in India in the previous year for less than 182 days.
According to government reports, while over 7 crore people file tax returns, only a fraction of them actually pay taxes because many fall below the taxable income threshold or use deductions to reduce liability.
Surcharge and Cess:
Surcharge under the New Regime (for individuals below 60 years): Income over ₹50 lakh but under ₹1 crore: 10% of income tax payable. Income over ₹1 crore but under ₹2 crore: 15% of income tax payable. Income over ₹2 crore but under ₹5 crore: 25% of income tax payable.
1. Who is the highest taxpayer in India in FY 2023–24? Reliance Industries is the highest tax-paying company, and Akshay Kumar tops among individual celebrities.
So if you return after October in a given fiscal year, you can still qualify as an NRI for that year as you will be staying for less than 182 days in India. If you return before October, you would lose the NRI status in the same year.
As per NRI Foreign Currency Rules in India NRIs can carry up to US $5,000 in cash and US $10,000, including cash, traveler's cheque, etc. Anything above this limit must be declared before the customs department upon arrival. If the cash is in Indian currency, then only up to Rs 25,000 is allowed.
Your NRI status is considered a NOR status for 2-3 years after you return to the country. After this, your status is that of a ROR and the taxation rules applicable to all resident Indians will be applicable to you as well.
Who is considered a temporary non-resident? Individuals that leave the UK for fewer than 5 years (periods of 12 months, not tax years), and prior to leaving have lived in the UK for at least 4 out of 7 of the most recent years, can be treated as being a 'temporary non-resident' upon returning to the UK.
If you are living and working or studying in the U.S. as a nonresident alien, you may be required to file a federal tax return. If you are a nonresident alien, the Internal Revenue Service (IRS) may still consider you as a resident alien for tax filing purposes.
If you're in Canada for less than 183 days and don't have significant ties to the country—like a home or family here—you could be considered a non-resident. Non-residents are generally only taxed on income earned in Canada, not on worldwide income.