Determining Residential Status under the Income Tax Act
Your tax liability in India starts with one question: are you Resident, Resident but Not Ordinarily Resident, or Non-Resident for the year?
Residential status is decided year by year based on physical presence in India — broadly, you are resident if you are in India for 182 days or more in the year, or for 60 days or more in the year and 365 days or more across the preceding four years, with relaxed thresholds for Indian citizens and PIOs visiting India and for Indian citizens with India income above ₹15 lakh. A resident is further tested as Ordinarily or Not Ordinarily Resident based on residency in earlier years. Only Resident and Ordinarily Resident status brings your worldwide income into the Indian tax net.
Why residential status matters
Status decides whether your foreign salary, foreign investments and foreign bank interest are taxed in India at all.
- Day-count analysis across the relevant financial year and preceding years
- Applying the deemed-resident rule for high-income Indian citizens not liable to tax elsewhere
- RNOR (Resident but Not Ordinarily Resident) qualification in transition years
- Treatment of foreign income, assets and bank accounts by status
- Interaction with DTAA tie-breaker rules where dual residency arises
- Documentation to support your claimed status if questioned
What this service includes
How we help you with your residential status determination.
Day-Count & Status Calculation
A precise computation of your status based on travel records for the year and preceding years.
RNOR Eligibility Review
Checking whether you qualify for the transitional RNOR status and for how long.
DTAA Tie-Breaker Analysis
Resolving dual-residency situations using treaty tie-breaker rules.
Status Documentation for Filing
Building a defensible record to support the status claimed in your return.
Our process
From initial consultation to completion.
Travel & Presence Data Collection
Compiling passport stamps, travel records and prior-year status history.
Status Computation
Applying the day-count tests to determine Resident, RNOR or Non-Resident status.
Cross-Year Verification
Checking consistency with status claimed in earlier returns.
Filing Position & Documentation
Finalising the status to be used for the year's return, with supporting evidence on file.
Why this determination needs care
What sets our approach apart.
A wrong status claim can bring foreign income into scrutiny
Overstating non-resident status is one of the more common triggers for reassessment.
RNOR status is time-limited and easy to miss
It typically applies only for a short transition window after returning to India.
Good travel records make status defensible
Having the day-count evidence ready in advance avoids disputes later.
your residential status determination questions answered
What people ask before engaging us.
Ready for expert help with your residential status determination?
Let our team help you navigate this process with clarity and confidence.
