To maintain Non-Resident Indian (NRI) status for tax purposes, an individual must typically stay outside India for at least 183 days in a financial year (April 1 to March 31), meaning they stay in India for less than 182 days. For high-income earners (Indian income > ₹15 lakh), the maximum stay allowed is reduced to 119 days.
The 182-day rule remains the primary criterion for residency. 60-day rule does not apply to NRIs, crew members, or Indian citizens working abroad. 120-day rule applies to high-income NRIs earning INR 1.5 million and over in India.
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.
This commonly referenced rule is part of many international income tax treaties and generally states that an individual may be exempt from income tax in a Host country if they are present in that country for fewer than 183 days within a defined period – often a calendar year or rolling 12-month period.
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.
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.
What is 182 Days Tax Rule in India? 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.
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.
The Physical Presence Test offers the most straightforward path to this exclusion: spend 330 full days outside the U.S. in any 12-month period, and you can exclude up to $130,000 of foreign earned income from U.S. taxation.
Thus, from Assessment Year 2021-22, an Indian Citizen earning total income in excess of Rs. 15 lakhs (other than from foreign sources) shall be deemed to be resident in India if he is not liable to pay tax in any country.
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.
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.
OCI stands for Overseas Citizen of India, a status given to foreign nationals of Indian origin that provides the right to stay and work in India indefinitely. On the other hand, NRI refers to a Non-Resident Indian who resides outside India for employment, business, or any other purpose.
An NRI is a person who is an Indian citizen but resides outside India for a certain period. The Income Tax Act 1961 explains an NRI as a person who satisfies any of the following conditions: He/she is in India for less than 182 days in a financial year (from April 1 to March 31).
In most cases, income earned in India is taxed in India first, and a foreign tax credit is provided in the US against the taxes paid in India. For instance, if a US-based NRI earns rental income in India and pays tax on it as per Indian slabs, that income still needs to be reported in their US tax return.
The 182-Day Rule
According to Section 6 of the Income Tax Act, this is the primary condition for establishing residency. Count every single day you're in India, including the day you arrive and the day you leave.
The individual must be present in the United States a total of 183 days during a 3 year look back counted as follows:
American citizens living abroad are required to continue to pay taxes in the US on their worldwide income. The Foreign Earned Income Exclusion allows expatriates to exclude foreign-earned income up to $130,000 (as of 2025) from US taxation if they have lived outside the US for 330 days in 12 consecutive months.
Foreign Earned Income Exclusion. Foreign Earned Income Exclusion (FEIE) is a tool that allows US expats to subtract their foreign earnings from US taxable income. If you live and work abroad, use the Internal Revenue Service's (IRS) Form 2555 to report your foreign earned income.
You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during any period of 12 consecutive months including some part of the year at issue. The 330 qualifying days do not have to be consecutive.
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.
As a foreign resident, you must lodge a tax return in Australia. You must pay tax on all Australian-sourced income, except for income that has already been correctly taxed (such as interest, unfranked dividends and royalties).
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.
September 15, 2026 - Third quarter 2026 estimated tax payment due. October 15, 2026 - Deadline to file your extended 2025 tax return. If you chose to file an extension request on your tax return, this is the due date for filing your tax return.
Can be maintained till the deposit matures. After that, it should be converted to resident accounts or funds to be transferred to RFC. Tax exempted till NRI has NOR status after returning. NRE and FCNR deposits and foreign inward remittances to be received in this account.