Residential Status · Panaji, Goa
Resident, NRI or RNOR — your Indian tax liability depends on it. Our Chartered Accountants in Goa determine your precise residential status under the Income Tax Act 1961 — computing your day count, applying the correct tests, and advising exactly what income is taxable in India and what is not.
Overview
Under the Income Tax Act 1961, your residential status in a financial year determines the scope of your Indian tax liability. A Resident is taxable on global income. An NRI is taxable only on Indian-source income. An RNOR (Resident but Not Ordinarily Resident) is taxed on Indian income plus income from a business controlled from India — but not on foreign income. The classification depends on a precise day-count test applied to your travel history, and errors in this determination can lead to either over-taxation or unintended non-compliance.
This topic is part of our broader who qualifies as an NRI and NRI tax filing overview guidance for non-residents and overseas Indians.
What's covered
End-to-end guidance and compliance for non-resident Indians.
Book a free consultation →Counting exact days of physical presence in India for the current year and the preceding years using your passport and travel records.
Applying the primary 182-day (or 60-day) test to determine Resident or Non-Resident classification.
Applying the 730-day and 7/10-year tests to determine Ordinarily Resident vs Not Ordinarily Resident (RNOR) status.
Advising on which income — Indian-source, foreign-source, or both — is taxable based on your status.
Providing a written determination letter for your records, banks and compliance purposes.
Monitoring your residential status each year as your travel patterns and stay periods change.
Our process
Provide your passport entry/exit stamps and India stay dates.
We compute your day count and apply the basic and additional conditions.
We confirm Resident, NRI or RNOR and the scope of taxable income.
We advise on tax liability and planning opportunities from your status.
Frequently asked questions
Under Section 6 of the IT Act, a person is Resident in India if: (a) they are in India for 182 days or more during the financial year; OR (b) they are in India for 60 days or more during the year AND 365 days or more during the 4 preceding financial years. A person who does not satisfy either condition is a Non-Resident for that year.
The 60-day condition is modified for: Indian citizens who leave India for employment or as ship crew (threshold raised to 182 days); and Indian citizens or PIOs visiting India whose total income from Indian sources exceeds ₹15 lakh (threshold is 120 days, with a special RNOR rule). For ordinary residents visiting India, the 60-day test can accelerate Resident classification.
A person is RNOR if they satisfy the basic Resident conditions but also satisfy one of: (i) they were Non-Resident in India in 9 of the 10 preceding financial years; or (ii) they spent 729 days or fewer in India during the 7 preceding financial years. RNOR status is typically held by returning NRIs for up to 2-3 years before becoming fully Ordinarily Resident.
An NRI is taxable in India only on: income that accrues or arises in India (salary for India-based work, rent from Indian property, interest on NRO accounts, capital gains on Indian assets); income deemed to accrue or arise in India (salary paid by the Indian government to a citizen abroad, dividends from Indian companies). Foreign income is completely outside the scope of Indian tax for NRIs.
An RNOR is taxable on: all income accruing or arising in India; and income from a business controlled in India or a profession set up in India. Unlike a fully Ordinarily Resident individual, an RNOR is NOT taxable on foreign income unless it arises from a business controlled from India. This makes RNOR status highly advantageous for returning NRIs with significant overseas assets.
No. Residential status is determined year by year and each year's computation is independent. However, the tests use historical data — the 4-year, 7-year and 10-year lookbacks mean that your residential status in prior years directly affects your current year status. We track multi-year status history to determine the correct classification each year.
Yes, this risk exists — particularly for RNOR and newly Resident individuals. However, Double Taxation Avoidance Agreements (DTAAs) between India and most countries ensure that the same income is not taxed twice. Tax credits, exemptions and reduced rates under DTAAs prevent double taxation. We apply the correct DTAA provisions to your situation.
Contact N D Savla & Associates in Panaji, Goa. Share your passport travel history for the relevant financial years and we will compute your precise residential status under the Income Tax Act, advise on taxable income scope, and provide documentation for your returns, banks and compliance records.
Related topics
Book a free consultation with a qualified Chartered Accountant in Goa. We'll compute your status and its tax implications accurately — no obligation.