The residential status of an individual is determined based on their period of stay in India. The criteria are defined under the Income Tax Act, 1961.
Read the full criteria (ROR, RNOR, NR & high-income rules)
1. Resident and Ordinarily Resident (ROR)
To be classified as Resident and Ordinarily Resident (ROR), an individual must satisfy at least one of the following basic conditions:
- Basic Condition 1: They are in India for a period of 182 days or more during that financial year.
- Basic Condition 2: They are in India for a period of 60 days or more during that financial year AND for 365 days or more during the four years immediately preceding that financial year.
AND both of the following additional conditions:
- Additional Condition A: They have been a resident of India in at least 2 out of the 10 previous years immediately preceding the relevant financial year.
- Additional Condition B: They have resided in India for a total of 730 days or more during the 7 previous years immediately preceding the relevant financial year.
2. Resident but Not Ordinarily Resident (RNOR)
An individual is classified as Resident but Not Ordinarily Resident (RNOR) if they satisfy at least one of the basic conditions mentioned for ROR, but do not satisfy both of the additional conditions.
3. Non-Resident (NR)
An individual is a Non-Resident (NR) for a financial year if they do not satisfy any of the basic conditions for being a resident.
4. Special Rules for High-Income Citizens & PIOs (Finance Act, 2020)
If you are an Indian citizen or Person of Indian Origin (PIO) and your total income (excluding foreign-source income) exceeds ₹15 lakh in a financial year, additional rules apply on top of the ones above:
- In Basic Condition 2, the 60-day threshold is replaced with 120 days. (If your income is ₹15 lakh or below, Basic Condition 2 does not apply to you at all — only the 182-day Basic Condition 1 matters.)
- Deemed Residency: as an Indian citizen not liable to tax in any other country by reason of domicile or residence, you are deemed a resident regardless of days spent in India, and automatically classified as RNOR.
- Forced RNOR: if you become a resident only because of the 120-day rule and stayed between 120–181 days, you are classified as RNOR regardless of the additional conditions.