Test one182 days
In India for 182 days or more in the tax year makes anyone resident.
ResultResident
Chartered Accountants in India, working with clients across Europe
Chartered Accountants in India, working with clients across Europe
Your residential status decides whether India taxes only your Indian income or everything you earn worldwide, including your salary in Europe. It is tested afresh every tax year from the days you spend in India. Check where you stand below, then let us confirm it from your travel dates.
Assumes you live in Europe and visit India. A guide only; we confirm your status from your actual travel dates.
India sorts individuals into three groups for each tax year: resident and ordinarily resident (ROR), resident but not ordinarily resident (RNOR), and non-resident. The group you fall into decides how much of your income India can tax.
Your passport, OCI card or EU residence permit does not decide your status. The number of days you spend in India does.
From 1 April 2026 the rules sit in section 6 of the Income-tax Act, 2025. The tests are the same as under the 1961 Act, only renumbered, so earlier years spent in Europe still count when we look back over your history.
India taxes only income received or arising in India, such as rent, NRO interest and gains on Indian assets.
Indian income, plus foreign income only from a business controlled or a profession set up in India.
Worldwide income, including salary and savings in Europe, with foreign assets reported in the return.
Each test looks at your days in India in the tax year, sometimes together with the four years before it.
In India for 182 days or more in the tax year makes anyone resident.
60 days this year and 365 days in the previous four. It does not apply to Indian citizens or PIOs visiting India.
For a visiting citizen or PIO with Indian income above ₹15 lakh, 120 days replaces 60.
An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any country.
Pick the situation closest to yours to see which test applies and what to watch for.
An Indian citizen who leaves India in a tax year for employment abroad is resident only with 182 days or more in India that year. The 60-day test does not apply.
A citizen or person of Indian origin who lives abroad and comes on a visit is resident only with 182 days, or 120 days and 365 days over four years when Indian income is above ₹15 lakh.
Long stays while working for a European employer can make you resident in India. If you become ROR, your salary is taxable in India too, and your employer may face questions about having a presence here.
If you are resident in India and in a European country in the same year, the tax treaty’s tie-breaker decides where you are treated as resident: permanent home, centre of vital interests, habitual abode, then nationality.
An Indian citizen with Indian income above ₹15 lakh who is not liable to tax in any country is deemed resident and treated as RNOR. Most people living in Europe are liable to tax there, so it rarely applies, but it can catch people between countries.
Returning Indians are often RNOR for one or two tax years, which keeps European income outside Indian tax for that time. Planning the date of your move matters.
Section references are to the Income-tax Act, 2025. Treaty tie-breaker wording differs slightly between treaties.
| Income or duty | Non-resident | RNOR | Resident (ROR) |
|---|---|---|---|
| Rent, NRO interest, gains in India | Taxed | Taxed | Taxed |
| Salary earned in Europe | Not taxed | Not taxed | Taxed |
| Interest on European savings | Not taxed | Not taxed | Taxed |
| Income from a business controlled in India | Only Indian part | Taxed | Taxed |
| NRE account interest | Exempt | Account must change | Account must change |
| FCNR deposit interest | Exempt | Exempt | Taxed |
| Foreign assets in the return | Not required | Not required | Required |
Treaty relief can reduce Indian tax on some income. FCNR and NRE rules also depend on FEMA, which uses its own tests.
Illustrative examples with names changed. Every case depends on its own facts.
Your status is a matter of fact, so keep the evidence. These are the records we ask for.
Treating yourself as resident when you are not can bring European income into Indian tax for no reason.
Claiming NRI status when you are resident means foreign income and foreign assets go unreported, which carries heavy penalties.
Treaty rates need the right residence and a valid tax residency certificate with Form 41.
Your status feeds into every other part of your Indian tax. These pages cover what comes next.
Everything is handled online, so it doesn’t matter which city you live in. We work with NRIs in every EU country, Switzerland and Norway.
We’ll work out your status for each tax year, tell you what India can tax and file the return that goes with it.
General guidance based on the rules as they stand, including the Income-tax Act, 2025 and the Income-tax Rules, 2026. It is not legal, tax or financial advice for your situation; please contact us before acting on it.