Am I NRI or Resident? 182-Day, 120-Day and ₹15 Lakh India-Income Test Explained

No, 150 days in India does not make you a resident by itself — but it does not guarantee NRI status either. Section 6(1) of the Income Tax Act 1961 (ITA 1961) applies a 182-day test, a 60-day + 365-day four-year lookback test, and, for high-earning citizens in zero-tax countries, a 120-day test and a ₹15 lakh deemed-resident rule. Your status decides what gets taxed, so getting it wrong is expensive.

The Four Tests at a Glance

A resident who is also Resident and Ordinarily Resident (ROR) is taxed on worldwide income. A Non-Resident (NRI) is taxed only on India-sourced income. A Resident but Not Ordinarily Resident (RNOR) pays tax on Indian income only — foreign income is exempt for the transition window.

Test 1: The 182-Day Rule (s.6(1)(a))

You are a resident if you are physically present in India for 182 days or more in the financial year. This is the test everyone quotes — and it is only the first test. Spend 181 days and you still face Test 2.

Test 2: The 60-Day + 365-Day Lookback (s.6(1)(b))

You are a resident if you were present in India for 60 days or more in the current FY and for 365 days or more in aggregate across the 4 immediately preceding FYs. Both limbs must be satisfied simultaneously.

This is the test that catches frequent travellers. Someone visiting India 63 days across a year — 25 in May, 20 in September, 18 in January — with 410 days across the prior 4 years is a resident under s.6(1)(b), despite only 63 days in India. Their global income becomes taxable in India.

The Exception: Who Escapes Test 2

The proviso to s.6(1) removes Test 2 for:

• An Indian citizen who leaves India in the FY for employment outside India (including as crew of an Indian ship), and
• An Indian citizen or Person of Indian Origin (PIO) who is visiting India from abroad.

For these two categories, the proviso to s.6(1) substitutes 182 days for 60 days in Test 2 — it does not delete the 365-day lookback. In practice both tests collapse to "182 days in the current FY", so a genuine work-visa holder who is in India for 140 days of the departure year and leaves for a Singapore job is NRI for that year. State the mechanism carefully: the proviso raises the 60-day threshold to 182, it does not drop cl.(b).

Test 3: The 120-Day Threshold for High-Earning Indian Citizens

The Finance Act 2020 tightened the net for Indian citizens in zero-tax countries. Where an Indian citizen has total income from India (other than foreign sources) exceeding ₹15 lakh in the FY and is not liable to tax in any other country by reason of domicile, residence or similar criteria, the 60-day limb in s.6(1)(b) is replaced by a 120-day limb.

So a Gulf-based Indian citizen with ₹18 lakh of Indian rental income who spends 130 days in India is a resident for that FY — pulled in far earlier than the 182-day test, yet given a longer leash than the ordinary 60-day rule.

Test 4: Deemed Residency on Income Alone (s.6(1A))

Separately, s.6(1A) deems an Indian citizen to be resident where their total income other than income from foreign sources exceeds ₹15 lakh in the FY and they are not liable to tax in any other country or territory. This applies irrespective of the number of days spent in India. It was aimed squarely at Indian professionals in the UAE, Qatar, Bahrain, Saudi Arabia and Kuwait — jurisdictions with no personal income tax.

A deemed resident is taxed only on India-sourced income — rent, dividends, NRO interest, capital gains — while foreign salary stays outside Indian tax, but a filing and advance-tax obligation arises from the first year.

Worked Example: Ananya, 150 Days in India

Ananya, an Indian citizen working in Dubai, spends 150 days in India during FY 2025-26 and files a return wondering whether she is NRI. Her prior 4 years' India presence totals 300 days.

• Test 1: 150 < 182 → fails.
• Test 2: 150 ≥ 60 ✓, but 300 < 365 ✗ → fails (both limbs required).
• Exception: she did not leave India for employment this year → proviso does not apply.
• Result: Ananya is NRI for FY 2025-26. Only her India-sourced income is taxable.

Variation: if her prior 4 years totalled 400 days, Test 2 succeeds (150 ≥ 60 and 400 ≥ 365) → she is resident for FY 2025-26. Whether her Dubai salary becomes taxable in India then turns on s.6(6): a returning NRI is typically RNOR (Resident but Not Ordinarily Resident) in her first few years back — RNORs are not taxed on foreign-source salary unless it is business/professional income controlled from India. Only an ROR (Ordinarily Resident) is taxed on global income (subject to DTAA relief). Do not skip the s.6(6) step.

Variation 2 — deemed resident: suppose Ananya's Indian rental income is ₹18 lakh and she is not liable to tax in the UAE. Her India-source income exceeds ₹15 lakh → under s.6(1A) she is a deemed resident regardless of her 150 days, and must file an Indian return on the ₹18 lakh; her Dubai salary stays outside Indian tax.

Changed FY 2025-26: returns for FY 2025-26 (AY 2026-27) are filed under the Income-tax Act 1961. The Income-tax Act 2025, effective 1 April 2026, re-enacts the same s.6 tests and the s.6(1A) deemed-resident rule with unchanged thresholds.

If Resident, Check RNOR (s.6(6))

Even when classified as resident, you may be Resident but Not Ordinarily Resident if you meet either condition:

• You were NRI in 9 out of the 10 FYs immediately preceding the current FY, or
• You were present in India for 729 days or fewer during the 7 FYs immediately preceding the current FY.

RNOR status keeps foreign income out of Indian tax for the transition window. A returning NRI who files as ROR from year one overpays tax on foreign income for up to 3 years.

Step-by-Step: Determine Your Status for FY 2025-26

• Count your India days for the current FY from passport stamps, boarding passes and Form 26AS/AIS records — the day you arrive counts, the day you depart does not.
• Apply Test 1: ≥182 days → resident.
• Check the exception: leaving India for foreign employment this FY, or a visiting citizen/PIO, means Test 2 is skipped — you are NRI if Test 1 failed.
• Apply Test 2: ≥60 days this FY and ≥365 days in the prior 4 FYs → resident.
• Check your profile: Indian citizen, India-source income >₹15L, no tax liability abroad → apply the 120-day limb and the s.6(1A) deemed-resident test.
• If resident, test RNOR under s.6(6) before filing as ROR.
• Document the position — travel records, employer letters, overseas tax residency certificates — in case of a scrutiny notice.

Use our NRI Residency Calculator to run all four tests on your actual day count.

FAQ

Q1: I stayed 150 days in India. Am I resident?
Not on that number alone. You fail the 182-day test, but if you were in India 60+ days this FY and 365+ days across the prior 4 FYs, you are resident under s.6(1)(b); the 120-day limb can also apply to an Indian citizen with >₹15L India income and no foreign tax liability.

Q2: Does the 60-day test apply to an Indian citizen leaving for a job abroad this year?
No. The proviso to s.6(1) removes Test 2 for Indian citizens leaving India for employment (and for crew of Indian ships). Only the 182-day test applies in the year of departure.

Q3: I am an Indian citizen in Dubai with ₹18 lakh Indian rent. I spent 40 days in India. Am I deemed resident?
Possibly. Under s.6(1A), if your income other than foreign sources exceeds ₹15 lakh and you are not liable to tax elsewhere, you are deemed resident regardless of day count. Your Dubai salary stays outside Indian tax; your Indian rent is taxed.

Q4: What is the difference between NRI, RNOR and ROR?
NRI: non-resident, taxed only on India-sourced income. RNOR: resident for tax but not "ordinarily resident" — foreign income stays exempt for the transition window. ROR: fully resident — worldwide income taxable in India.

Q5: How many years can I stay RNOR after returning?
There is no fixed year count — RNOR lasts while either s.6(6) condition holds: NRI in 9 of the prior 10 years, or ≤729 days in India across the prior 7 years. Most returning NRIs get 2–3 years before becoming ROR.

Q6: Does spending 183 days in India always make me ROR?
No — 182+ days makes you resident, but you may still be RNOR under s.6(6) if you satisfy the lookback conditions. ROR is a separate determination within the "resident" category.

Q7: What records should I keep for my residency position?
Passport entry/exit stamps, airline itineraries, employer contracts, overseas tax residency certificates and Form 26AS. In a scrutiny assessment you must produce the day count that supports your claimed status.

Sources

• Section 6(1), 6(1A) and 6(6), Income-tax Act 1961 — residential status and deemed residency.
• Proviso to s.6(1), inserted by the Finance Act 2020 (w.e.f. AY 2021-22) — 120-day limb and employment/visitor exceptions.
• Finance Act 2020 Explanatory Memorandum — deemed-resident provisions targeting zero-tax countries.
• CBDT circulars on day-count convention (arrival day counts, departure day does not).
• Income-tax Act 2025, s.6 (re-enactment, effective 1 April 2026) — identical residence tests.

For your exact day count and income mix, book a consultation at harunraaj.com.

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