Am I an NRI? — the 182/60+365 day test, RNOR, and the deemed-resident rule

Quick frame: Indian income-tax residency is decided by physical days in India, not by visa, citizenship, or where your salary lands. Section 6 of the Income-tax Act has two limbs — and a third "deemed-resident" trap added in Finance Act 2020 for high-income Indians.

The basic test

You are a Resident in a financial year if either:

1. You spent ≥ 182 days in India this FY, OR
2. You spent ≥ 60 days this FY AND ≥ 365 days in the preceding 4 FYs combined

If neither applies, you are a Non-Resident (NRI).

The 60-day threshold is relaxed to 182 days if you are an Indian citizen or PIO who:

• Leaves India for employment abroad, or
• Visits India during the year, AND your Indian-source income is below ₹15 lakh

The deemed-resident rule (FA 2020)

If you are an Indian citizen with Indian-source income > ₹15 lakh AND you are not liable to tax in any other country, you are deemed Resident — even if you spent 0 days in India. This catches stateless tax-residents (e.g., Indians in UAE/Bahrain who earn rental and dividends from India but are tax-residents nowhere).

RNOR — the 2-year buffer for returning NRIs

Even if you are Resident, you can be "Resident but Not Ordinarily Resident" (RNOR) if either:

• You were Non-Resident in 9 of the last 10 FYs, OR
• You were in India ≤ 729 days in the last 7 FYs

RNOR is the sweet spot — your foreign income stays exempt in India for up to 2-3 years after returning. Plan your move in late February or March to maximise this.

Use the NRI Residency Tool — it walks through all three tests.

Why it matters

Status	Indian income	Foreign income
Resident & Ordinary	Taxed	Taxed
RNOR	Taxed	Exempt (mostly)
Non-Resident (NRI)	Taxed	Exempt

Misreading status leads to either over-paying tax or attracting Section 90 / 91 inquiries on undisclosed foreign income.

FAQ

Q: Is the day of arrival/departure counted? A: Per CBDT and judicial precedent, both the day of arrival and the day of departure are counted as days in India. Keep passport stamps as proof.

Q: Does the new regime change residency? A: No. Residency is determined under Section 6 first; once you are a Resident, you choose between old and new regime for your tax slabs.

Q: I'm a US citizen of Indian origin — does the deemed-resident rule apply? A: No. The deemed-resident rule applies only to Indian citizens. PIOs/OCIs with foreign citizenship are exempt from the ₹15-lakh rule.