Money NRI Tax Residency · the 182 / 120 day tests
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Residency · the 182 / 120 day tests — one delayed flight can flip you to ROR

India taxes by residency, not citizenship. The two tests of Section 6 (Income Tax Act) decide whether your foreign income is taxable in India. Get this wrong and one delayed flight costs you tens of lakhs.

AK
Amish says
I miscounted my own days in 2022 — a back-to-back family wedding stretch took me past the 120-day threshold. Cost me a 90-minute call with my CA and a few thousand in extra tax. Use the Day Counter from January, not from March.

The two core tests · Section 6, Income Tax Act

India taxes you based on residency, not citizenship. There are two tests; you become a tax resident if you fail either:

How days are counted

One delayed flight can flip you. Both arrival and departure days count as full days. Stopovers in airports don't (transit-only). Flights crossing midnight count as the day of departure.

What your status actually means

StatusIndian-source incomeForeign income
NRITaxable in IndiaTax-exempt in India
RNOR (post-return)Taxable in IndiaMostly tax-exempt 2-3 yrs
ROR (full resident)Taxable in IndiaWorldwide income taxable

Use the Day Counter

Track your India presence day-by-day to avoid accidental ROR status. Open the NRI Day Counter →

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