NRI Tax Residency Test

How Section 6 residency works

Indian tax residency is determined by days physically present in India during a financial year (1 April–31 March), not citizenship or visa status. You are a Resident if you satisfy either: (a) 182 days or more in the current FY, OR (b) 60 days or more in current FY and 365 days or more across the four preceding FYs. The 60-day rule is relaxed to 182 days for Indian citizens leaving India for employment abroad, or for crew members on Indian ships. From FY 2020–21 a new 120-day deeming rule applies to Indian-citizen NRIs whose Indian-source income exceeds ₹15 lakh.

Worked example

A Bengaluru-based software engineer takes a US assignment in October 2025. By 31 March 2026 he has spent 184 days in India (April–Sept) and 181 days in the US. He fails the 182-day test by a comfortable margin only if he stays out for the full FY 2026–27 too. For the partial year FY 2025–26: 184 days ≥ 182 → he is a Resident, taxed on global income including the US salary (with DTAA credit for US federal tax paid). Had he left on or before 30 September, he'd be NRI for that year — the difference is several lakhs in Indian tax on the US salary.

When to use this

• Year-end check before booking that India trip in February / March that could tip you over 182
• Planning an overseas relocation date — leaving before 28 September secures NRI status
• Returning Indians evaluating RNOR (Resident but Not Ordinarily Resident) status for a 2–3 year tax-free transition window on foreign income

For NRI account routing see NRE vs NRO, for selling Indian property as an NRI use NRI property sale tax, and read our deep-dive NRI residency test (India).