An individual is a tax resident of India in a given financial year if they are physically present in India for 182 days or more that year, OR present for 60 days or more that year AND 365 days or more across the preceding 4 years. Residents are taxed on worldwide income; non-residents (NRIs) are taxed only on income earned, accrued, or received in India. A 'Resident but Not Ordinarily Resident' (RNOR) intermediate category exists for recent returnees, exempting foreign-sourced income for a transitional period.
Resident test: 182+ days in India in the financial year, or 60+ days that year combined with 365+ days over the prior 4 years.
Full tax residents are taxed on worldwide income; NRIs are taxed only on India-sourced income.
The Resident but Not Ordinarily Resident (RNOR) status can shield foreign income from Indian tax for a transitional window after returning to India.
Financial year runs 1 April to 31 March, distinct from the calendar year used in most other jurisdictions.
Required Documents
Passport with entry/exit stamps
Travel history records
Common Mistakes
Assuming the 182-day test is the only trigger for residency — the 60-day-plus-365-day alternate test catches many returning NRIs and frequent visitors by surprise.
Not claiming RNOR status when eligible after returning to India, resulting in unnecessary tax on foreign income.