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  • DBMS Global

How will a change in your residential status affect the taxes you pay in India?

For the purpose of income tax in India, the income tax laws in India classify taxable persons as:

  • A resident

  • A resident not ordinarily resident (RNOR)

  • A non-resident (NR)

The taxability differs for each of the above categories of taxpayers. Before we get into taxability, let us first understand how a taxpayer becomes a resident, an RNOR or an NR.


A taxpayer would qualify as a resident of India if he satisfies one of the following 2 conditions :

  • Stay in India for a year is 182 days or more or

  • Stay in India for the immediately 4 preceding years is 365 days or more and 60 days or more in the relevant financial year

In the event an individual who is a citizen of India or person of Indian origin leaves India for employment during an FY, he will qualify as a resident of India only if he stays in India for 182 days or more. Such individuals are allowed a longer time greater than 60 days and less than 182 days to stay in India. However, from the financial year 2020-21, the period is reduced to 120 days or more for such an individual whose total income (other than foreign sources) exceeds Rs 15 lakh.

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