NRI

NRI residential status — RNOR, ROR and the 120-day rule

Indian-source income, foreign income and the ₹15-lakh deemed-residency trap. How RNOR status protects you for up to 3 years on return.

Key facts

Resident threshold
182 days OR 60 days + 365 days in last 4 yrs
Indian citizens visiting
120 days if Indian income > ₹15L
RNOR window
Up to 2 years after return (typical)
Deemed resident
Income > ₹15L & no tax in any country

An individual is Resident in India for a tax year if she stays 182 days or more, OR stays 60 days + has aggregated 365 days in the preceding 4 years. The 60-day test relaxes to 182 days for Indian citizens leaving for employment abroad and to 120 days for visiting NRIs whose Indian-source income exceeds ₹15 lakh.

A Resident is further classified as ROR or RNOR. You are RNOR if you have been non-resident in 9 of the last 10 years OR in India for 729 days or less in last 7 years. The deemed-resident rule (Finance Act 2020) treats an Indian citizen with Indian-source income > ₹15L as RNOR if not liable to tax in any other country.

RNOR is golden — foreign income (other than business controlled from India) is NOT taxable. ROR is taxed on worldwide income.

FAQs

When does the 120-day rule actually trigger?

Only for Indian citizens or PIOs visiting India whose Indian-source income (excluding foreign-source) is above ₹15 lakh. For others the regular 182/60-day tests apply.

How long can I stay RNOR after returning to India?

Typically 2 financial years — the year of return and one more — assuming you meet the 9-of-10 non-resident test. Plan asset realisation and rollovers within this window.

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Last updated: 02 Apr 2026

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