India tax residency for individuals: resident, RNOR and non-resident (Tax Year 2026-27, with FY 2025-26)

Scope and who this is for (Non Resident FAQs)

• This skill decides the residential status of an individual for Indian income tax: Resident and Ordinarily Resident (ROR), Resident but Not Ordinarily Resident (RNOR, the Act says "not ordinarily resident") or Non-Resident (NR). It then says what each status is taxed on, what it changes in the return, and how treaty relief is claimed.
• Primary year: Tax Year 2026-27 (1 April 2026 to 31 March 2027). Residence for it is decided under section 6 of the Income-tax Act, 2025. The portal says: "Residential status under section 6 of the Income Tax Act, 2025 will apply only for tax years beginning on or after 1 April 2026."
• Previous year: FY 2025-26 (returns for AY 2026-27, filed in 2026). Residence for it is decided under section 6 of the Income-tax Act, 1961, using days up to 31 March 2026. See the dated section "FY 2025-26 (AY 2026-27): the 1961 Act rules" below.
• The portal confirms the tests did not change between the two Acts: "No change has been made in the basic conditions for determining individual residency."
• A "tax year" is "a period of twelve months contained in a financial year" and replaces "previous year" (Objective and scope of the New Act FAQs).
• Out of scope, refer: companies (resident if an Indian company or if its place of effective management is in India), HUFs, firms, trusts, the NRI concessional regime for investment income, FEMA status for bank accounts, and computing tax itself (see the India income tax Guide).
• Currency is Indian rupees. A lakh is one hundred thousand.

Ask the client first

• Citizenship and origin. Indian citizen, person of Indian origin (PIO), or neither? The special rules below apply only to citizens and PIOs, and deemed residence only to citizens.
• Days in India, tax year by tax year. Exact days present in India in the year being tested (1 April to 31 March), and in each of the preceding ten tax years. Ask for passport entry and exit stamps or travel records. The portal pages cited here do not say how the day of arrival and the day of departure are counted; confirm before relying on a count within a day or two of a threshold (check).
• Why they left or came. Did they leave India in the year for employment abroad, or as a crew member of an Indian ship? Or are they living abroad and "coming on a visit" to India?
• Income other than foreign-source income. Total income for the year, other than income from foreign sources. Is it more than ₹15 lakh (Non Resident FAQs)? This drives the 120-day rule and deemed residence.
• Tax status abroad. Is the client liable to tax in any other country by reason of domicile, residence or similar criteria? Ask for the foreign return or a Tax Residency Certificate (TRC) from that country.
• Foreign income and assets. Salary, rent, interest, dividends, gains or business income from outside India; foreign bank accounts, shares, property, insurance or trusts. Is any of it received in India? Is any foreign business controlled from India, or any profession set up in India?
• Treaty claim. Does the client want a lower treaty rate or treaty exemption in India (needs a TRC plus Form 10F, now Form 41), or does an Indian resident need an Indian TRC for a foreign payer (Form 10FA, now Form 42)?
• Prior returns. What status did the client file in the previous ten years? Old returns are evidence for the 9-of-10 test.

The method, step by step

Test each tax year on its own. The portal: "Residential status is assessed separately for each tax year."

1. Pick the year and the Act. Tax Year 2026-27 and later: 2025 Act, section 6. FY 2025-26 and earlier: 1961 Act, section 6, even if the assessment happens after 1 April 2026.
2. 182-day test. In India for 182 days or more in the tax year: resident. Go to step 5.
3. 60-day test, with its exceptions. In India for 60 days or more in the tax year and 365 days or more in the four preceding tax years: resident (go to step 5), unless an exception replaces the 60 days:
   • Citizen who leaves India in the year for employment abroad or as crew of an Indian ship: resident only at 182 days or more. The 60/365 limb does not apply.
   • Citizen or PIO coming on a visit to India, income other than foreign-source income not above ₹15 lakh (Non Resident FAQs): resident only if in India for "more than 182 days". (Exactly 182 days is already caught by step 2, which the FAQ words as "182 days or more"; the "more than 182 days" wording only replaces the 60-day limb.)
   • Citizen or PIO coming on a visit, income other than foreign-source income above ₹15 lakh (Non Resident FAQs): resident at more than 182 days, or at 120 days or more in the year plus 365 days or more in the four preceding years (the 2025 Act's section 6(2)(b) read with 120 days).
   • None met: not resident under the day tests. Go to step 4.
4. Deemed residence (citizens only, and only if non-resident under steps 2 and 3). If the client is an Indian citizen, has total income other than foreign-source income above ₹15 lakh (Non-Resident Individual for AY 2026-27), and is not liable to tax in any other country by domicile, residence or similar criteria, the client is deemed resident (section 6(7) of the 2025 Act; section 6(1A) of the 1961 Act), whatever the days. This person is RNOR (section 6(6)(d) of the 1961 Act, per the ITR-2 form); go to step 7. Otherwise: Non-Resident. Stop. A citizen who is resident under step 2 or 3 never uses this step and goes to the normal RNOR tests in step 5.
5. Ordinarily resident or not. A resident is RNOR if either (a) non-resident in nine out of the ten preceding tax years, or (b) in India for 729 days or less in total in the seven preceding tax years. Section 6(13) of the 2025 Act; section 6(6) of the 1961 Act.
6. Two further RNOR cases. The ITR-2 form lists as RNOR: a visiting citizen or PIO with income other than foreign-source income above ₹15 lakh (Non Resident FAQs) who was in India "for 120 days or more but less than 182 days", and a deemed-resident citizen (step 4). Otherwise the resident is ROR.
7. Apply the scope of income for that status (table below), then the return consequences (ITR form, Schedule FA/FSI, rebate) and any treaty claim.
8. Record the working. Day counts per year, the limb relied on, and documents. Residence is decided afresh each year.

Figures and section numbers by year (Non Resident FAQs)

The day counts and the ₹15 lakh threshold are the same in both years. Only the section numbers change.

Rule	Figure	Tax Year 2026-27 (2025 Act)	FY 2025-26 (1961 Act)
Basic test	182 days or more in the tax year	Section 6	Section 6(1)(a)
60-day limb	60 days or more in the year and 365 days or more in the four preceding years	Section 6 (6(2)(b) per the portal)	Section 6(1)(c)
Citizen leaving for employment abroad, or crew of an Indian ship	182 days or more; 60-day limb switched off	Section 6 (relaxation "continues without any change")	Explanation 1(a) to section 6(1)(c)
Visiting citizen or PIO	More than 182 days	Section 6	Explanation 1(b) to section 6(1)(c)
Visiting citizen or PIO, income other than foreign-source income above ₹15 lakh	120 days or more in the year and 365 days or more in the four preceding years	Section 6(2)(b) read with 120 days	Explanation 1(b) to section 6(1)(c)
Deemed resident (citizen)	Income other than foreign-source income above ₹15 lakh, not liable to tax in any other country, and non-resident under the day tests; days irrelevant	Section 6(7)	Section 6(1A)
Not ordinarily resident	Non-resident in 9 of the 10 preceding years, or 729 days or less in the 7 preceding years	Section 6(13)	Section 6(6)(a)
RNOR: 120-day visitor	Income other than foreign-source income above ₹15 lakh; 120 days or more but less than 182 days	Section 6(13) is "similar to" 6(6); the exact clause is not named on the portal (check)	Section 6(6)(c)
RNOR: deemed resident	As deemed resident above	As above (check)	Section 6(6)(d) with 6(1A)

• The 120-day rule and deemed residence apply from FY 2020-21. The portal: "The Finance Act, 2020, w.e.f. Assessment Year 2021-22 has amended the above exception" and introduced section 6(1A) "applicable from Assessment Year 2021-22" (Non-Resident Individual for AY 2026-27).
• The ₹15 lakh test uses total income other than income from foreign sources. It is not "income from Indian sources", and it is not converted into any foreign currency.
• Two wordings for the visitor rule. The Non Resident FAQs say a visiting citizen or PIO is resident if in India "for a total period of more than 182 days". The AY 2026-27 ITR-2 form's tick box reads "182 days or more during the previous year and 365 days or more within the preceding 4 years" (ITR-2, AY 2026-27). The two differ at exactly 182 days. The basic test ("182 days or more", FAQ Q1) already makes anyone with exactly 182 days resident, so the difference should not change the result; the "more than 182 days" wording only replaces the 60-day limb. Keep the working and confirm before relying on it (check).
• Look-back years cross the two Acts. For Tax Year 2026-27, the four-year, seven-year and ten-year look-backs count years that were under the 1961 Act. The portal: "the preceding years may include years under the repealed Act."

Portal section map: 1961 Act to 2025 Act (Non Resident FAQs)

Topic	1961 Act	2025 Act
Residence tests	Section 6(1)	Section 6 (6(2)(b) for the 60/120-day limb)
Deemed residence	Section 6(1A)	Section 6(7)
Not ordinarily resident	Section 6(6)	Section 6(13)
Transition (old Act for earlier years)	n/a	Section 536
NRI concessional regime	Sections 115D, 115E, 115F	Sections 213, 214, 215
NRI return exemption	Section 115G	Section 216
Continuation after becoming resident	Section 115H	Section 217
NRE account interest exemption	Section 10(4)(ii)	Schedule IV
Treaty relief information (Form 10F, now Form 41)	Section 90(5) (check)	Section 159(8)
Indian TRC application (Form 10FA, now Form 42)	Section 90/90A (check)	Section 159(1) and 159(2)

The Form 41 and Form 42 sections come from the portal's form manuals and mapping guide (Form 41 User Manual; Form 42 User Manual; Form Mapping Guide). The 1961 Act sections for those two forms are not stated on the pages cited here (check).

How each status is taxed (Step-by-step guide to Schedules FSI, TR and FA)

Income	ROR	RNOR	NR
Income received, accruing or arising in India (Indian salary, Indian rent, Indian interest, gains on Indian shares or Indian property)	Taxed	Taxed	Taxed
Foreign income received in India	Taxed	Taxed	Taxed
Foreign income from a business controlled in India or a profession set up in India	Taxed	Taxed	Not taxed unless received in India
Other foreign income (foreign salary for work abroad, foreign rent, foreign interest or dividends, gains on foreign shares or foreign property), not received in India	Taxed	Not taxed	Not taxed

• ROR is taxed on worldwide income. The portal: Schedule FSI "applies to taxpayers who are residents of India. In this schedule, taxpayers must report all income that accrues or arises from sources outside India."
• NR is not taxed on foreign income that is neither received nor accruing in India. The ITR-2 validation rules: "Schedule FSI is not applicable if residential status is non resident" (ITR-2 validation rules, AY 2026-27).
• RNOR sits between. The RNOR rule in the table (foreign income taxed only if received in India or from an India-controlled business or India-set-up profession) is the scope-of-income section of the Act (section 5 of the 1961 Act). The portal pages found do not quote that section or name its 2025 Act number, and the Act text is on a host this skill may not cite. Confirm against the Act before advising on a large foreign receipt (check).
• Credit for foreign tax (sections 90, 90A or 91) is claimed in Schedule FSI and Schedule TR with Form 67, and only by a resident. ITR-2: Schedule TR is "available only in case of resident".

What the status changes in the return (ITR-2 validation rules, AY 2026-27)

Point	ROR	RNOR	NR
ITR-1 or ITR-4	Allowed if otherwise eligible	Not allowed	Not allowed
Schedule FA (foreign assets)	Mandatory	Not required	Not required
Schedule FSI and TR (foreign income and tax relief)	Yes	Yes (resident)	Not applicable
Rebate u/s 87A	Allowed within limits	Allowed within limits	"not allowed to Non-resident"
Treaty rate in the return	Not available on rate (ITR-3 rule)	Not available on rate (ITR-3 rule)	Available only if the TRC flag is "Yes" and Form 10F is filed

• ITR-1 is for "a Resident (other than Not Ordinarily Resident) Individual" (Salaried Individuals for AY 2026-27); ITR-4 "cannot be filed by an individual ... who: is a Resident but Not Ordinarily Resident (RNOR), or Non-Resident Indian" (ITR-4 FAQs). An RNOR or NR uses ITR-2, or ITR-3 with business income.
• Schedule FA: "Schedule FA need not be completed if the taxpayer is classified as "not ordinarily resident" or a "non-resident."" For an ROR it covers foreign assets held at any time in the calendar year ending 31 December (FA/FSI guide).
• A non-resident's ITR-2 asks for the jurisdiction of residence, the foreign taxpayer identification number and, for a citizen or PIO, days in India in the year and in the four preceding years (ITR-2, AY 2026-27).
• ITR-3 validation rule: "If status of the taxpayer is other than Non-Resident, DTAA benefit is not available in rate of taxation" (ITR-3 validation rules, AY 2026-27).

Treaty residence: tie-breaker, TRC and Form 10F (Form 41 User Manual)

Tie-breaker. A person can be resident in India under section 6 and resident in another country under its law in the same year. India's Double Taxation Avoidance Agreements (DTAAs) settle this in their residence article. Most follow the usual order: permanent home, then centre of vital interests, then habitual abode, then nationality, then mutual agreement between the two tax authorities. The wording differs by treaty, and no incometax.gov.in page found sets out the order. Read the residence article of the specific treaty before advising (check). The tie-breaker decides treaty residence only; the client can still be resident under section 6 for Indian domestic purposes and for return schedules.

Non-resident claiming treaty relief in India.

• Get a Tax Residency Certificate (TRC) from the country of residence.
• File Form 10F on the e-Filing portal. Under the 2025 Act it is Form 41, "Information to be provided under section 159(8)" (Form Mapping Guide).
• The Form 41 manual: "It must be filed when a nonresident wants to claim relief under a Double Taxation Avoidance Agreement (DTAA) as provided in section 159". Prerequisites include the foreign tax identification number and a "Copy of certificate referred to in section 159(8)", that is the TRC.
• A non-resident without a PAN, who is not required to have one, files through a separate non-resident login (NR ID) and e-verifies by OTP.
• Choose the right tab: "Forms as per Income Tax Act 2025" for Tax Year 2026-27; "Forms as per Income Tax Act 1961" for FY 2025-26 and earlier.
• In the AY 2026-27 return: "FORM 10F is mandatory to be filed by Non residents, to claim benefit of preferable rate" and "TRC flag be considered as 'No" if Form 10F is not there" (ITR-2 validation rules).

Indian resident needing an Indian TRC (for a foreign payer or foreign authority).

• Apply in Form 42 (formerly Form 10FA) to the Assessing Officer under sections 159(1) and 159(2) of the 2025 Act. If satisfied, the officer issues the certificate in Form 43 (Form 42 User Manual).
• Any registered user with a valid, active PAN can apply. Part B asks for the applicant's address "for the year for which the TRC is desired".

Boundary and exception table (Non Resident FAQs)

Boundary	Inside	Outside
Basic test	182 days or more: resident	181 days or fewer: go to the 60-day limb
60-day limb	60 days or more in the year and 365 days or more in the four preceding years	Either missed: not resident on this limb
Citizen leaving for employment or as Indian-ship crew	182 days or more	181 days or fewer: non-resident (60-day limb switched off)
Visiting citizen or PIO, income other than foreign-source income ₹15 lakh or less	More than 182 days	Otherwise non-resident; exactly 182 days is resident under the basic test, though the visitor wordings differ (check)
Visiting citizen or PIO, income other than foreign-source income above ₹15 lakh	120 days or more plus 365 days in the four preceding years: resident, and RNOR if under 182 days	Under 120 days, or under 365 days in the look-back: non-resident unless deemed resident
₹15 lakh threshold	Exceeds ₹15 lakh	Exactly ₹15 lakh or less: 120-day and deemed rules do not apply
Deemed residence	Citizen, over ₹15 lakh, not liable to tax in any other country, non-resident under the day tests	PIO who is not a citizen; or liable to tax somewhere by domicile or residence
RNOR, 9-of-10 test	Non-resident in 9 or more of the 10 preceding years	8 or fewer: test the 729-day limb
RNOR, 729-day test	729 days or less in the 7 preceding years	730 days or more: ROR unless another RNOR case applies
Acts	Tax years starting on or after 1 April 2026: 2025 Act	Earlier years: 1961 Act, even in later reassessments

Worked cases (Non Resident FAQs)

Day counts below are assumed facts for illustration.

Case 1: returning NRI. Indian citizen, worked in Dubai and was non-resident in each of the ten tax years FY 2016-17 to FY 2025-26. Moves back on 1 July 2026 and stays. Days in India in Tax Year 2026-27: 1 July 2026 to 31 March 2027 = 274.

• 274 is 182 or more: resident for Tax Year 2026-27.
• Non-resident in 10 of the 10 preceding years (at least 9): RNOR.
• Interest on a UAE bank account, not brought to India: not taxed. Rent from a flat in Pune: taxed. Uses ITR-2; no Schedule FA.
• Tax Year 2027-28: the preceding ten years are FY 2017-18 to Tax Year 2026-27, with non-resident years FY 2017-18 to FY 2025-26 = 9. Still RNOR on the 9-of-10 test.
• Tax Year 2028-29: non-resident in only 8 of the preceding 10, so test the 729-day limb. Days in the seven preceding years: 100 (visits in FY 2021-22 to FY 2025-26, assumed) + 274 + 366 (Tax Year 2027-28, which includes 29 February 2028) = 740. That is more than 729: ROR from Tax Year 2028-29, taxed on worldwide income and must file Schedule FA.

Case 2: visiting PIO, income in India above ₹15 lakh. British citizen of Indian origin, lives in London and pays UK tax. Has Indian rent and interest giving income other than foreign-source income of ₹22,00,000. In India for 130 days in Tax Year 2026-27, and 400 days in the four preceding years.

• Not a citizen, so deemed residence cannot apply.
• Visitor with income above ₹15 lakh: 130 is 120 or more, and 400 is 365 or more. Resident under section 6(2)(b) read with 120 days.
• In India for 120 days or more but less than 182: RNOR. UK salary not received in India is not taxed in India. If the UK also treats the client as resident, the UK-India treaty tie-breaker decides treaty residence (check the treaty).
• Same facts but 110 days: non-resident.

Case 3: citizen in a no-tax country. Indian citizen lives in a country with no personal income tax and is not liable to tax there by domicile or residence. In India for 45 days. Indian income (rent and capital gains) other than foreign-source income: ₹18,00,000.

• Days fail every test, so the client is non-resident under the day tests. But citizen, over ₹15 lakh, not liable to tax in any other country: deemed resident under section 6(7) of the 2025 Act, whatever the days.
• Deemed residents are RNOR: Indian income taxed; foreign income not received in India not taxed.
• If income other than foreign-source income were exactly ₹15 lakh, the threshold is not exceeded: non-resident.

Case 4: leaving India for a job abroad. Indian citizen, always resident, leaves on 1 October 2026 to take up employment in Singapore. Days in India in Tax Year 2026-27: 1 April to 30 September 2026 = 183.

• Leaving for employment: resident only at 182 days or more. 183 is 182 or more: resident for Tax Year 2026-27, and ROR (resident for many prior years). Singapore salary for October 2026 to March 2027 is taxed in India, with credit for Singapore tax through Schedule FSI, Schedule TR and Form 67.
• Had the client left on 30 September 2026 (182 days, counting 1 April to 29 September), the result is the same. Leaving a day earlier gives 181 days: non-resident, even though 60 days and 365 days in the four preceding years are met, because the 60-day limb is switched off for this client.
• The day count at the edge turns on how arrival and departure days are counted (check).

FY 2025-26 (AY 2026-27): the 1961 Act rules (Non-Resident Individual for AY 2026-27)

Dated 25 September 2026.

• Residence for FY 2025-26 is decided under section 6 of the 1961 Act, on days from 1 April 2025 to 31 March 2026. The portal: the residence for FY 2025-26 "shall be determined based on the period of stay up to 31 March 2026, in accordance with the provisions of the Income Tax Act, 1961."
• The tests are the same as above: 182 days or more; or 60 days or more plus 365 days or more in the 4 preceding years; 182 days for a citizen leaving for employment or as Indian-ship crew; the visitor rule; 120 days where income other than foreign-source income exceeds ₹15 lakh; deemed residence under section 6(1A); RNOR under section 6(6)(a), (c) and (d).
• A status once decided under the 1961 Act "can only be reopened in accordance with the provisions of that Act", and a reassessment for an earlier year after 1 April 2026 still uses the 1961 Act (section 536 of the 2025 Act).
• AY 2026-27 returns use the old ITR forms. The ITR-2 residential status panel for AY 2026-27 has tick boxes for each limb, including the RNOR cases under section 6(6)(c) and 6(6)(d) (ITR-2, AY 2026-27).
• Due date for AY 2026-27 non-audit returns: "31st July, 2026 or 31st August for non -audit cases, etc." (Income Tax Returns FAQs). By 25 September 2026 these dates have passed; a non-audit filer who has not filed files a belated return. See the India income tax Guide for belated-return limits and fees.
• Treaty claims for FY 2025-26 use Form 10F under the "Forms as per Income Tax Act 1961" tab.

When to refuse or refer

Refer to a chartered accountant, or decline, when:

• A day count falls within a few days of 60, 120, 182, 365 or 729, and the arrival and departure days or the travel records are uncertain.
• The client was in India for exactly 182 days as a visiting citizen or PIO and the result is disputed (the basic test makes them resident, but the portal's visitor wordings differ).
• The client is resident in India under section 6 and resident in another country: the treaty tie-breaker needs the treaty text and facts on home, family, economic ties and habitual abode.
• The RNOR scope matters for a large foreign receipt (foreign sale proceeds or salary brought into India, foreign business run from India): the scope-of-income wording is not confirmed on the portal here.
• Whether the client is "liable to tax" in another country is unclear (for example, a country with a territorial system or remittance basis).
• The client is a company, trust, HUF or firm, or wants the NRI concessional regime (sections 213 to 217 of the 2025 Act).
• Residence for years before FY 2025-26 is disputed or under reassessment.
• FEMA residential status (for NRE/NRO accounts) is the question: it follows a different definition.

Filing and payment (Form 41 User Manual)

• Return form. RNOR and NR: ITR-2 (no business income) or ITR-3 (business or professional income). ROR: ITR-1 or ITR-4 only if eligible and with no foreign assets or foreign income.
• Status panel. Tick the limb relied on. A non-resident enters the jurisdiction of residence and foreign taxpayer identification number; a citizen or PIO also enters days in India for the year and the four preceding years.
• ROR with foreign items. Complete Schedule FA (calendar year to 31 December), Schedule FSI and Schedule TR, and file Form 67 to claim foreign tax credit.
• Treaty relief for a non-resident. Keep the foreign TRC; file Form 41 (Tax Year 2026-27) or Form 10F (FY 2025-26) on the e-Filing portal and e-verify; answer the TRC question "Yes" in the return.
• Indian TRC. File Form 42 and e-verify; the Assessing Officer issues Form 43.
• Tax Year 2026-27 returns will use forms under the 2025 Act; the portal says this return "is not due until July 2027".
• Pay tax by e-Pay Tax on the portal, choosing the correct Act and year on the challan.

Completion checklist

• Citizenship or PIO status recorded.
• Days in India counted for the tax year and for each of the ten preceding tax years, with evidence.
• Reason for travel recorded (leaving for employment, crew, visiting, other).
• Income other than foreign-source income computed and compared with ₹15 lakh (Non Resident FAQs).
• Foreign tax liability checked for deemed residence.
• Correct Act applied: 2025 Act for Tax Year 2026-27, 1961 Act for FY 2025-26.
• Resident or non-resident decided, limb named.
• RNOR tested on all four routes (9 of 10; 729 days; 120-day visitor; deemed resident).
• Scope of income applied; foreign income received in India identified.
• Return form, Schedule FA, FSI and TR decided; rebate eligibility checked.
• Treaty claim: TRC obtained, Form 41 or Form 10F filed, tie-breaker checked against the treaty.
• Every "check" item confirmed or referred.