Taxability of income depends upon the residential status of a person. NRI’s pay tax only on the income earned or accrued in India and not on the foreign income. Whereas for an Indian resident, the global income will also be taxable.
Use our Residential Status Calculator which automatically determines whether you are a Resident, Non-Resident (NRI), Ordinarily Indian Resident (ROR), Resident but Not Ordinarily Resident (RNOR).
Taxability of income depends upon your residential status. If you are an NRI then only the income earned or accrued in India will be taxable for you, not the foreign income. Whereas if you are a resident of Indian then your global income will also be taxable.
Our Residential Status Calculator automatically determines whether you are a Resident, Non-Resident (NRI), Ordinarily Indian Resident (ROR), Resident but Not Ordinarily Resident (RNOR).
As per section 6 of the Income-Tax Act, an individual is said to be non-resident (NRI) in India if he is not a resident in India and an individual is deemed to be resident in India in any previous year if he satisfies any of the following conditions:
If an individual qualifies as a resident, the next step is to determine if the individual is a Resident ordinarily resident (ROR) or an RNOR. An individual will be a ROR if both of the following conditions are met:
However, if any individual fails to satisfy even one of the above conditions, he would be an RNOR.
From FY 2020-21, a citizen of India or a person of Indian origin who leaves India for employment abroad during the year will be a resident and ordinarily resident if he stays in India for an aggregate period of 182 days or more. However, this condition will apply only if his total income (other than foreign sources) exceeds Rs 15 lakh.
Also, a citizen of India who is deemed to be a resident in India (w.e.f FY 2020-21) will be a resident and ordinarily resident in India.
‘Non-resident Indian’ is an individual who is a citizen of India or a person of Indian origin and who is not a resident of India. However, if none of the above conditions is satisfied, the individual is said to be a Non-Resident Indian (NRI).