India NRI Tax Residency Calculator

Resident and Ordinarily Resident (ROR)

An individual with ROR status has the highest tax liability. Their global income (income earned in India and outside India) is taxable in India, subject to relief provided under Double Taxation Avoidance Agreements (DTAA).

Resident but Not Ordinarily Resident (RNOR)

RNOR is a beneficial transitional status. Individuals with this status are taxed on their Indian-sourced income. Foreign income is generally not taxed in India unless it is derived from a business controlled from or a profession set up in India.

Non-Resident (NR)

A Non-Resident is taxed only on income that is earned or accrued in India. Income earned and received outside India is not taxable in India for an NR.

Who is a Person of Indian Origin (PIO)?

For tax purposes, a PIO is an individual (not a citizen of specific neighboring countries) who has held an Indian passport, or whose parents or grandparents were born in undivided India.

If your status is: Resident and Ordinarily Resident (ROR)

• Global Income is Taxable: Your entire income, whether earned in India or anywhere else in the world, is taxable in India.
• Mandatory ITR Filing: You must file an Income Tax Return (ITR) in India and report all your income sources.
• Disclose Foreign Assets: You are required to report all your foreign assets (bank accounts, properties, shares, etc.) in Schedule FA of your ITR.
• Claim DTAA Relief: To prevent paying tax on the same income twice, you can claim relief under the Double Taxation Avoidance Agreement (DTAA) that India has with your other country of residence.

If your status is: Resident but Not Ordinarily Resident (RNOR)

• Indian Income is Taxable: You are taxed on income that is received, earned, or accrues in India.
• Foreign Income is Mostly Exempt: Income earned and received outside India is generally not taxable. The only exception is if it comes from a business controlled from India or a profession set up in India.
• File ITR (If Applicable): You need to file an ITR in India only if your total Indian income exceeds the basic exemption limit (e.g., ₹3 lakh under the new tax regime for FY 2024-25).
• No Foreign Asset Disclosure: You are generally exempt from the requirement to report your foreign assets in the ITR.

If your status is: Non-Resident (NR)

• Only Indian Income is Taxable: Your tax liability is strictly limited to income that is earned or received in India.
• Foreign Income is Not Taxable: Any income you earn and receive outside India is not subject to Indian tax laws.
• File ITR (If Applicable): Like an RNOR, you must file an ITR if your Indian income is above the basic exemption limit. This is also necessary if you want to claim a refund for any excess Tax Deducted at Source (TDS).
• Tax Deducted at Source (TDS): Be aware that most payments from India to NRs, such as rent, interest, and capital gains, are subject to TDS at specific rates.

1. How are the days of arrival and departure counted?

For the purpose of calculating your physical stay in India, both the day of your arrival and the day of your departure are counted as days of stay in India. It's crucial to count these days correctly from your passport's immigration stamps.

2. Does my residential status remain the same every year?

No, your residential status is determined for each Financial Year separately based on your physical presence during that specific year and the preceding years. It is possible to be a Non-Resident in one year and a Resident in the next, or vice versa.

3. I became an ROR. What should I do with my NRE/NRO accounts?

Once your status changes to Resident and Ordinarily Resident (ROR), you are required by law to inform your bank. Your NRE (Non-Resident External) account must be re-designated as a Resident Rupee Account. Your NRO (Non-Resident Ordinary) account will also be converted into a regular resident account. The interest earned on these accounts will become taxable in India from that point on.

4. What exactly is "income from foreign sources"?

This is a key term used in the "Deemed Resident" rule and for visiting NRIs. It means any income that accrues or arises outside India. However, it does not include income from a business that is controlled from India or a profession that is set up in India. For example, if you have rental income from a property in Dubai, that is income from a foreign source. But if you have an Indian business and earn income from foreign clients, that is not considered income from a foreign source for this rule.

5. This calculator says I'm an NR, but I have a PAN card. Do I still need to file an ITR?

Having a PAN card does not automatically mean you need to file an Income Tax Return (ITR). You are only required to file an ITR in India if your total income from Indian sources during the financial year exceeds the basic exemption limit (e.g., ₹3 lakh under the new tax regime for FY 2024-25). However, it is often advisable to file an ITR if you want to claim a refund for any Tax Deducted at Source (TDS).