India tax residency rules for NRIs, OCIs and foreign nationals

Under Section 6 of the Income Tax Act, your Indian tax residency is decided purely by physical presence — the number of days you spend in India during the financial year (April to March).

First, a common misconception

An NRI (Non-Resident Indian) legally holds an Indian passport. If you hold a US (or other foreign) passport, you are a foreign national — either an OCI cardholder or a plain foreign citizen — regardless of ethnicity. The rules differ by these categories.

OCI cardholders

• Indian income up to ₹15 lakh: resident only if you spend 182+ days in India in the year. The 60-day secondary test does not apply.
• Indian income over ₹15 lakh: resident if 182+ days, OR if 120+ days this year and 365+ days over the previous four years (this makes you RNOR).

Foreign nationals without OCI

• Resident if 182+ days this year, OR
• 60+ days this year AND 365+ days across the previous four years.

Indian citizens living in India

Generally cross 182 days easily and are ordinarily resident (worldwide income taxable). A special 'deemed resident' rule applies if Indian income exceeds ₹15 lakh and you are not liable to tax in any other country.

Why the financial year matters

Because the window is April–March, a long winter trip that straddles two financial years splits its days across both. Planning around the FY boundary can change your status. Tools like Nivaas track days per financial year automatically.

This article is general information, not tax advice. Residency outcomes depend on your exact facts — confirm with a qualified tax professional.