As of 2020-2021, the definition of a Non-Resident Indian (NRI) for tax purposes requires an individual to be outside India for more than 182 days in a financial year. For high-income earners (Indian income > ₹ 15 > 1 5 lakh), the stay limit is stricter—they must stay outside India for over 120 days, or they become residents.
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.
Who is a Non-Resident Indian (NRI)? An Indian citizen or a foreign citizen of Indian origin who has stayed abroad for employment/carrying out business or vocation for 182 days or more or under circumstances indicating an intention for an unknown duration of stay abroad is a Non-Resident Indian (NRI).
An NRI (Non-Resident Indian) in India is an Indian citizen who lives outside India for employment, business, or other purposes for an extended period, typically defined by spending fewer than 182 days in India during a financial year, retaining Indian citizenship and many rights like voting, but with different tax obligations and investment rules. They maintain strong ties to India and have specific banking and investment options, like NRE/NRO accounts, to manage their finances across countries.
To be classified as an NRI, you must be an Indian citizen with an Indian passport and residing outside India.
Instead, they need to convert their savings account into an NRO account. That is why you must declare yourself as an NRI, and start complying with the respective rules and regulations as soon as your resident status changes. Not doing so can attract legal and financial penalties.
Embassy wishes to clarify on the citizenship status of OCI cardholders. Constitution of India does not allow holding Indian citizenship and Citizenship of a foreign country simultaneously.
As an NRI, PIO, or OCI, you may be required to file tax returns in India if your Indian income surpasses the specified threshold or if you seek to claim refunds for excess tax deductions. While filing an ITR is mandatory only under certain circumstances, voluntary filing can be beneficial in many ways.
What are the types of citizenship in India? According to the Ministry of Home Affairs, there are four ways in which Indian citizenship can be acquired: birth, descent, registration and naturalisation. The provisions are listed under sections 3, 4, 5(1) and 5(4) of the Citizenship Act, 1955.
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.
Income Tax Act's NRI Definition: An individual is an NRI if they've been in India for less than 182 days in the preceding financial year or if they've been in India for less than 60 days during the previous year and 365 days or less during the past four years.
You can use an NRE bank account to store foreign currency converted to Indian rupees, while an NRO account is used to keep both foreign income and money earned in India. NRO accounts have a limit for repatriation up to USD 1 million per financial year, but NRE accounts have no such limit.
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.
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.
NRIs must open NRO or NRE accounts instead of regular savings accounts under FEMA rules. NRIs can invest in various assets but are prohibited from investing in small savings or PPF schemes. NRIs can buy residential and commercial property in India but not agricultural land.
Citizenship (Amendment) Act Rules, 2024
Individuals who entered India legally from Pakistan, Bangladesh, and Afghanistan on or before December 31, 2014, and belong to the Hindu, Sikh, Buddhist, Jain, Parsi, or Christian community are eligible.
The Certificate of Citizenship is an optional form. A validly issued U.S. passport generally serves as evidence of your U.S. citizenship during its period of validity unless that passport has been revoked by the Department of State.
India does not permit dual citizenship due to concerns over legal and administrative clarity but instead offers Overseas Citizenship of India (OCI) status, which provides limited rights without granting full citizenship.
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.
All incomes of NRIs are charged irrespective of any threshold value for TDS. Nominal deductions are not applicable on investment plan income, except under specific situations. NRIs usually need not file taxes if the income is subject to clauses under Section 115G of the Income Tax Act.
Certain NRIs: If the NRIs are only generating income from dividends or interest, or if their income is subject to TDS, then they might be exempted from filing tax returns. Senior Citizens (above 75 years): Senior citizens above the age of 75 whose income consists of pension and interest can be exempt from filing ITR.
The Constitution of India does not allow the holding of Indian citizenship with that of a foreign country simultaneously.
Disadvantages of OCI Card
Citizens with OCI cards cannot become members or vote in the Legislative Assembly or Legislative Council of the Indian Parliament. An OCI cardholder is not allowed to hold constitutional posts, such as that of the President, Vice President, Judge of the Supreme or High Court and so on.