Question 1

What is the basic rule to become a Non-Resident (NR) in India?

Accepted Answer

Under Section 6(1), an individual is treated as a Non-Resident if they stay in India for less than 182 days during the financial year, or less than 60 days if their stay in the preceding 4 years was 365 days or more (subject to special citizen exceptions).

Question 2

What is the 120-day rule for visiting NRIs?

Accepted Answer

If an Indian citizen or Person of Indian Origin (PIO) residing abroad visits India and their total Indian taxable income exceeds ₹15 Lakhs, the 60-day threshold is substituted by 120 days. If their stay is between 120 and 181 days, they qualify as Resident but Not Ordinarily Resident (RNOR).

Question 3

What is Deemed Residency under Section 6(1A)?

Accepted Answer

Section 6(1A) treats an Indian citizen having total Indian income exceeding ₹15 Lakhs as a deemed resident (RNOR) if they are not liable to tax in any other country or territory by reason of domicile or residence (e.g. Dubai, UAE, Saudi Arabia).

Question 4

Is foreign salary taxable for an RNOR?

Accepted Answer

No. For a Resident but Not Ordinarily Resident (RNOR), foreign salary and overseas business income are not taxable in India unless the business is controlled from or the profession is set up in India.

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