NRI - What It Really Means (And What It Doesn't) In 2026

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“Mani, am I an NRI or not?”

You’d be surprised how often I get this question in our WhatsApp community.

People who’ve lived abroad for 15 years aren’t sure. People who just moved back 3 months ago aren’t sure.

OCI holders living in the US aren’t sure.

And honestly? I don’t blame them.

Because “NRI” means different things under different Indian laws.

You could be an NRI under one law and a Resident under another – at the same time, in the same financial year.

Confusing? Absolutely. But after helping thousands of NRIs since 2017 navigate this, I’ve learned how to break it down so it actually makes sense.

This guide goes deep.

We’re covering the legal definitions, the day-counting rules, the tricky edge cases, and most importantly – what happens to your status when you return to India.

The First Thing Most People Get Wrong

Here’s what trips everyone up.

India has two completely separate definitions of “NRI.”

One under the Income Tax Act, 1961 – this decides how much tax you pay.

One under FEMA (Foreign Exchange Management Act), 1999 – this decides what bank accounts you can hold, how you invest, and how money moves in and out.

These two definitions use different criteria. They can give you different results for the same financial year.

Yes, you can be an NRI under FEMA but a Resident under the Income Tax Act. At the same time. In the same year.

This is the single biggest source of confusion for every NRI I’ve spoken to.

Let me explain each one separately.

NRI Under the Income Tax Act

The Income Tax Act doesn’t actually define “NRI” directly. It defines who is a Resident.

If you don’t qualify as a Resident, you’re a Non-Resident.

Under Section 6 of the Income Tax Act, you are a Resident of India in a financial year (April 1 to March 31) if you satisfy either of these two conditions:

Condition 1: The 182-Day Rule

You are physically present in India for 182 days or more during the financial year.

That’s it. If you’re in India for 182 days or more between April 1 and March 31, you’re a Resident for that year – regardless of your citizenship, passport, visa, or anything else.

Condition 2: The 60-Day + 365-Day Rule

You are present in India for 60 days or more during the financial year AND 365 days or more during the 4 financial years immediately preceding that year.

If you satisfy either Condition 1 or Condition 2, you’re a Resident.

If you don’t satisfy both conditions, you’re a Non-Resident.

For a broader look at 182-day residency rule, check our dedicated guide.

The Exceptions That Protect NRIs

The 60-day rule in Condition 2 has special exceptions for certain categories.

These are designed to protect NRIs from accidentally becoming Resident just because they visited India for a couple of months.

Exception 1: Indian citizens going abroad for employment or as crew

If you’re an Indian citizen who left India for employment abroad or as a crew member of an Indian ship, the 60-day threshold in Condition 2 is replaced with 182 days.

This means for you, only Condition 1 matters. You become Resident ONLY if you’re in India for 182 days or more. Period.

So if you left India for a job in the US on an H1B visa, you can visit India for up to 181 days in a financial year and still remain Non-Resident.

Exception 2: Indian citizens / PIOs visiting India (income up to ₹15 lakh)

If you’re an Indian citizen or a Person of Indian Origin living abroad and you come to visit India, AND your total income from Indian sources (excluding foreign income) is ₹15 lakh or less, the 60-day threshold is also replaced with 182 days.

Same protection. You stay Non-Resident as long as you don’t cross 182 days in India.

Exception 3: The 120-Day Rule (High-Income NRIs)

Here’s where it gets tricky. This was introduced in Finance Act 2020.

If you’re an Indian citizen or PIO visiting India, AND your total income from Indian sources (excluding foreign income) exceeds ₹15 lakh, the 60-day threshold becomes 120 days (not 182 days).

So if you earn more than ₹15 lakh from India (rental income, capital gains, business income, etc.) AND you spent 120+ days in India in the current year AND 365+ days in the preceding 4 years – you become a Resident.

But here’s the nuance: in this specific case, you become a Resident but Not Ordinarily Resident (RNOR), not a full Resident. More on what RNOR means shortly.

Quick summary:

Your situation	Days in India to become Resident
Indian citizen who left for employment abroad	182 days (only Condition 1 applies)
NRI/PIO visiting India, Indian income ≤ ₹15 lakh	182 days (only Condition 1 applies)
NRI/PIO visiting India, Indian income > ₹15 lakh	120 days + 365 days in preceding 4 years
Foreign citizen (non-PIO)	182 days OR (60 days + 365 days in preceding 4 years)

Understanding RNOR: The In-Between Status

The Income Tax Act actually has four categories of residential status, not two.

Resident and Ordinarily Resident (ROR) – Taxed on worldwide income
Resident but Not Ordinarily Resident (RNOR) – Taxed mostly on Indian income only
Non-Resident (NR) – Taxed only on Indian income
Deemed Resident – Special category (explained below)

RNOR is the golden status for returning NRIs. And most people don’t understand it.

You qualify as RNOR if you are a Resident (you crossed the day threshold) BUT you meet either of these:

You were a Non-Resident in 9 out of 10 financial years preceding the current year, OR
You were physically present in India for 729 days or less during the 7 financial years preceding the current year

Why RNOR matters hugely:

As an RNOR, you’re taxed only on Indian income – just like an NRI. Your global income (US salary earned before moving, foreign investments, retirement accounts abroad) is NOT taxable in India.

This gives you a transition window. Typically, returning NRIs get 2-3 years of RNOR status before becoming fully Resident (ROR).

That transition window is incredibly valuable for tax planning when you’re moving money, selling assets abroad, and restructuring your finances.

Real example from our community:

Suresh returned from the US to India in August 2024.

He’d been abroad for 12 years. In FY 2024-25, he spent more than 182 days in India, so he became a Resident.

But because he was NRI for 9+ out of the preceding 10 years, he qualified as RNOR.

As RNOR, his US 401(k) withdrawals, US rental income, and US stock sales were NOT taxable in India. Only his Indian income was taxable.

He maintained RNOR status for about 2 years before becoming a full ROR.

During those 2 years, he strategically liquidated his US assets and moved money to India.

This planning saved him lakhs in taxes. Legally.

The Deemed Resident Rule (The Anti-Avoidance Provision)

This was introduced in Finance Act 2020 and catches people who try to be “stateless” for tax purposes.

If you’re an Indian citizen AND your total income from Indian sources (excluding foreign income) exceeds ₹15 lakh AND you are not liable to pay tax in any other country (by reason of domicile, residence, or similar criteria), then you are deemed to be a Resident of India.

This targets Indian citizens living in zero-tax jurisdictions (like UAE, which has no personal income tax) who earn significant Indian income but claim to be non-resident everywhere.

If you’re deemed resident, you’re automatically classified as RNOR (not full ROR). So your foreign income is still not taxable – but your Indian income is fully taxable.

Who this affects:

Mostly Indian citizens in Gulf countries (UAE, Saudi Arabia, Qatar, Bahrain, Kuwait, Oman) who have substantial Indian income but don’t meet the 182-day test anywhere.

Who this does NOT affect:

If you pay taxes in your country of residence (US, UK, Canada, Australia, Singapore, etc.), this deemed resident rule does NOT apply to you.

You’re already a tax resident somewhere.

NRI Under FEMA: A Completely Different Approach

Now let’s look at the FEMA definition.

This is the one that affects your bank accounts, investments, and foreign exchange transactions.

Under FEMA Section 2(v) and 2(w), a “Person Resident in India” means:

A person residing in India for more than 182 days during the preceding financial year. But that’s not all – FEMA also considers purpose and intention of stay.

This is the fundamental difference between Income Tax and FEMA.

Income Tax Act: Counts days. Period. Purpose doesn’t matter.

FEMA: Considers purpose AND intention of stay. Days are one factor, but not the only one.

Under FEMA:

If you leave India for employment, business, or vocation abroad, you become an NRI from the day you leave India. Not after 182 days. From Day 1.
If you leave India to study abroad, you become an NRI from the day you depart. (RBI Circular No. 45, December 8, 2003 clarified this.)
If you return to India permanently, you become a Resident under FEMA from the day you arrive. Not after 182 days. From Day 1.

This is a critical difference.

Example: You’re working in Dubai and you return to India on November 15, 2025 with the intention of settling permanently.

Under FEMA, you are a Resident from November 15, 2025. You need to start converting your NRE/NRO accounts to resident accounts, change your demat account status, etc.

But under the Income Tax Act, you may still be a Non-Resident for FY 2025-26 (because you weren’t in India for 182 days between April 1 and March 31 that year, and you may have the preceding-4-years protection).

Same person. Same date. Different status under two different laws.

This is why I always tell people in our community: figure out your status under BOTH laws separately.

They have different consequences.

Income Tax Act vs FEMA: Side-by-Side Comparison

Parameter	Income Tax Act	FEMA
What it governs	Taxation (how much tax you pay)	Banking, investments, foreign exchange
Primary test	Number of days in India	Purpose/intention + days in India
Key threshold	182 days in financial year	More than 182 days in preceding financial year
When status changes	End of financial year (determined retroactively)	Can change mid-year based on intent
Leaving India for job	NRI if <182 days in India	NRI from Day 1 of departure
Returning to India permanently	May still be NRI for current FY	Resident from Day 1 of return
Categories	ROR, RNOR, NR, Deemed Resident	Resident / Non-Resident (binary)
Practical impact	What income is taxable, at what rate	Which bank accounts you hold, how you invest, how money moves

Counting Days: The Rules You Must Know

Both laws use day-counting, but the mechanics matter.

Both date of arrival AND date of departure count as days in India.

If you land in India on January 1 and leave on January 5, that’s 5 days, not 4.

Days don’t need to be continuous.

You can visit India multiple times. All days across all visits in a financial year are added up.

Financial year = April 1 to March 31.

This is the period that matters for both Income Tax and FEMA.

Stay includes Indian territorial waters.

Being on a ship within 12 nautical miles of the Indian coastline counts as being “in India.”

Passport stamps matter.

Keep records of all your entry and exit dates. Immigration stamps are your proof.

Pro tip from our community: Maintain a simple spreadsheet with every India trip. Date of arrival, date of departure, number of days. Update it after every trip. You’ll thank yourself at tax time.

Here’s a simple way to think about it:

Days in India in FY	Status for most NRIs (Income Tax)	Status under FEMA
Less than 60 days	Non-Resident	Depends on purpose/intent
60-119 days	Non-Resident (for most NRIs with Indian income ≤ ₹15 lakh)	Depends on purpose/intent
120-181 days	Non-Resident (unless income > ₹15 lakh + 365-day test met)	Depends on purpose/intent
182 days or more	Resident (ROR or RNOR depending on history)	Likely Resident (but depends on intent)

What About the US 183-Day Rule?

Many NRIs in the US ask about the “183-day rule.” This is a US tax concept, not Indian.

The US uses the Substantial Presence Test – if you’re physically present in the US for at least 31 days during the current year AND 183 days during a 3-year lookback period (using a weighted formula), you’re a US tax resident.

India uses 182 days (not 183). The US uses 183 days with a different calculation. These are separate systems.

If you’re a US NRI, you need to track your days for both countries.

Can you be a tax resident of both India and the US simultaneously?

Yes. This is called dual residency.

It’s resolved using the DTAA (Double Taxation Avoidance Agreement) between India and the US, which has “tie-breaker” rules based on permanent home, center of vital interests, habitual abode, and nationality.

The DTAA prevents you from being taxed twice on the same income.

But you must file returns in both countries and claim the appropriate relief.

What “NRI” is NOT

Let me clear up some common misconceptions.

NRI is NOT the same as citizenship.

Your citizenship (Indian, American, British, etc.) is a completely separate concept from your residential status. An Indian citizen can be a Non-Resident. A US citizen can be a Resident of India for tax purposes. Citizenship and residency are independent.

For more on the citizenship angle, check our dual citizenship guide.

NRI is NOT permanent.

Your residential status is determined fresh every financial year. You could be NRI this year and Resident next year. It’s not a lifelong label.

NRI is NOT the same as OCI.

OCI (Overseas Citizen of India) is an immigration/visa status for foreign citizens of Indian origin. NRI is a tax/regulatory status for Indian citizens living abroad. They’re different things entirely. An OCI holder may or may not be an “NRI” for tax purposes, depending on their days in India.

NRI status is NOT based on where you earn your salary.

It’s based on how many days you physically spend in India (for tax) or your purpose/intention of residence (for FEMA). You could earn 100% of your income from an Indian company while sitting in New York and still be an NRI.

NRI status doesn’t depend on your passport.

Whether you hold an Indian passport, US passport, or any other passport is irrelevant to your residential status under the Income Tax Act. It’s purely about physical presence (days in India).

Having an NRE account doesn’t make you an NRI.

The account type is a consequence of your FEMA status, not the cause. If your status changes, your account must change too.

Returning to India: How Your Status Changes

This is the section most relevant if you’re planning to move back.

When you return to India, your status changes differently under each law. Let me walk through the timeline.

Under FEMA:

You become a Resident the day you arrive in India with the intent to stay permanently.

“Intent to stay permanently” is key. If you’re coming for a 3-month visit, you’re still an NRI under FEMA. If you’re coming to settle in India for good, you’re a Resident from Day 1.

Only you know your intent. But banks and regulators will look at objective factors: did you leave your job abroad?

Did you ship your household goods? Did you enroll your kids in an Indian school?

The banking impact is immediate:

You must convert NRE/NRO accounts to regular resident accounts
NRE fixed deposits can continue until maturity (but no new NRE FDs)
FCNR deposits can continue until maturity
Your NRI demat account must be converted to resident demat
Investment permissions change (you can now access PPF, small savings, etc.)

Under Income Tax Act:

Your residential status is determined at the end of the financial year, based on total days spent in India.

The year you return:

Let’s say you return on July 15, 2026 (permanently). From July 15 to March 31, 2027 = approximately 260 days.

That’s more than 182 days. So for FY 2026-27, you are a Resident under Income Tax.

But are you ROR or RNOR?

If you’ve been abroad for many years, you’ll almost certainly qualify as RNOR for the first 2-3 years after return.

Because you were NRI in 9 out of 10 preceding years, and/or you spent less than 730 days in India in the preceding 7 years.

Late-year returns get interesting:

If you return on January 15, 2027, you only have about 75 days left in FY 2026-27 (January 15 to March 31).

That’s less than 182 days. So for FY 2026-27, you remain Non-Resident under Income Tax – even though FEMA considers you a Resident from January 15 itself.

This means:

FEMA: Resident from January 15 (must convert bank accounts)
Income Tax: Still NRI for FY 2026-27 (Indian income only taxable)
Income Tax: Will become Resident (RNOR) in FY 2027-28

This gap creates a unique planning window.

Many families in our community deliberately time their return to optimize this transition. More on this in the planning section below.

For a detailed checklist, see our financial planning guide for returning NRIs.

The RNOR Transition Window: How to Use It

When you return, the transition from NRI to RNOR to full Resident (ROR) typically follows this pattern:

Year 0 (Year of Return): Depending on when you arrive, you may be NRI or RNOR for Income Tax purposes. Under FEMA, you’re Resident from arrival date.

Years 1-2 (Transition): You’re likely RNOR. Only Indian-sourced income is taxable. Foreign income is not taxable in India.

Year 3+ (Full Resident): Once you’ve been Resident for 2 out of 10 preceding years AND spent 730+ days in India in the preceding 7 years, you become full ROR. Your worldwide income becomes taxable in India.

What to do during the RNOR window:

Liquidate foreign investments (capital gains not taxable in India during RNOR years, subject to DTAA)
Repatriate foreign savings to India
Sell foreign property if planned
Withdraw from retirement accounts (like 401(k)) if appropriate
Move funds to India through proper banking channels
Restructure your portfolio for the Indian tax regime

What NOT to do:

Don’t rush everything. You typically have 2-3 years.
Don’t ignore tax implications in your former country of residence (US citizens are taxed on global income regardless)
Don’t forget FBAR and FATCA reporting if you’re a US citizen or green card holder
Don’t convert all accounts on Day 1 – NRE FDs can continue to maturity with tax-free interest

Timing Your Return: What the Community Has Learned

Over the years, our community members have figured out some practical strategies for timing the move.

Strategy 1: Return early in the financial year (April-June)

If you return in April or May, you’ll definitely cross 182 days in India by March 31. You become Resident (RNOR) for that financial year.

The advantage: you start your RNOR clock immediately. Your 2-3 year RNOR transition window begins right away. No “wasted” year.

Strategy 2: Return late in the financial year (January-March)

If you return in January-March, you won’t cross 182 days by March 31. You remain NRI for that financial year under Income Tax (but become Resident under FEMA).

The advantage: you get one extra year of NRI tax status. Combined with the RNOR years that follow, you can get 3-4 years of favorable tax treatment.

The disadvantage: you need to convert bank accounts under FEMA immediately, but your tax status hasn’t caught up yet. This mismatch requires careful management.

Strategy 3: The “visit first” approach

Come to India in the previous financial year for a short visit (less than 60 days). Set things up. Find housing, schools, bank accounts. Don’t change FEMA status yet (you’re just visiting).

Return permanently the following year. This gives you the full next financial year.

What most people in our community do: Return between April and August. Clean transition, no confusion, maximum use of the RNOR window.

Things You Must Do When Your Status Changes

When you go from NRI to Resident (or the other way), certain actions are legally required. Not optional. Required.

When becoming an NRI (leaving India for employment/business):

Inform your bank and convert savings accounts to NRE/NRO
Change your demat account to NRI demat (PIS or Non-PIS)
Update your KYC with all financial institutions
PPF account: can continue until maturity but no new deposits or extensions
Stop investing in schemes restricted for NRIs (like small savings)
File Indian tax returns as NRI for that financial year if you have Indian income

When becoming a Resident (returning to India):

Inform your bank and convert NRE/NRO to resident savings account
NRE FDs: can continue until maturity at the same interest rate
FCNR FDs: can continue until maturity
Open an RFC (Resident Foreign Currency) account for funds you brought from abroad
Convert NRI demat to resident demat
Update KYC everywhere
Register for all resident Indian investment options (PPF, NPS, small savings)
Build your CIBIL score as a resident
File tax returns as Resident (RNOR or ROR) from the applicable financial year

Income Tax Bill 2025: What’s Changing from April 2026

The Indian government introduced the Income Tax Bill 2025 in Parliament in February 2025. This is set to replace the Income Tax Act, 1961 from April 1, 2026.

Here’s what’s staying the same and what’s changing regarding NRI status.

What’s NOT changing:

The 182-day rule remains the primary residency test. No change.
RNOR conditions remain substantively the same.
Deemed Resident provisions continue.

What’s being clarified/tweaked:

The 60-day rule exemption for Indian citizens going abroad for employment or as crew members has been more clearly codified.
NRIs and PIOs visiting India with Indian income below ₹15 lakh remain protected under the 182-day-only test.
The 120-day threshold for high-income NRIs (Indian income > ₹15 lakh) continues as before.

The practical impact:

For most NRIs, the new bill doesn’t dramatically change anything about residential status. The core framework remains the same.

The bill mainly simplifies the language and organization of the law.

But if you’re a high-income NRI with significant Indian earnings (rental income, capital gains, business income), pay extra attention to the 120-day rule. It could catch you if you’re spending extended periods in India.

My advice: Don’t panic about the new bill. The residency rules are largely continuity, not revolution. But do consult a tax advisor if your Indian income exceeds ₹15 lakh.

Common Scenarios NRIs Ask About

Let me address some real situations from our community.

Scenario 1: “I work in the US on H1B. I come to India for 3 months every year. Am I NRI?”

Yes. You left India for employment. Only the 182-day test applies to you. 3 months = about 90 days. Well under 182. You’re NRI for both Income Tax and FEMA purposes.

Scenario 2: “I’m a US citizen with OCI card. I spend 6 months in India and 6 months in the US every year.”

Depends on exact day count. If you’re in India for 182+ days in a financial year, you’re Resident under Income Tax (but likely RNOR if this pattern is recent). Under FEMA, your intent matters – if you maintain a permanent home in both places, the determination can be complex.

As a US citizen, you’ll always need to file US taxes too. The DTAA tie-breaker rules apply.

Scenario 3: “I work in Dubai. No income tax there. I earn rental income from property in India exceeding ₹15 lakh.”

Be very careful. If your Indian income exceeds ₹15 lakh AND you don’t pay tax in any other country (UAE has no income tax), the Deemed Resident rule may apply. You could be classified as RNOR in India even without spending a single day there.

This is one of the most misunderstood provisions. Consult a CA who understands NRI taxation immediately.

Scenario 4: “I returned to India in October 2025. What’s my status for FY 2025-26?”

Under FEMA: Resident from October 2025 (assuming permanent return). Convert bank accounts.

Under Income Tax: Count your days. If you arrived October 1, you have October through March = about 182 days. Right at the borderline. If it’s exactly 182 or more, you’re Resident (RNOR). If 181 or less, you’re NRI for this FY.

Every single day matters at the borderline. Check your passport stamps carefully.

Scenario 5: “I left India 6 years ago for the US. I hold Indian citizenship. I want to come back in 2026. How do I plan?”

Check our return planning guide for 2026. But in short: you’ll become NRI-to-RNOR-to-ROR over about 3 years. Use the RNOR window to restructure finances. Time your return for early in the financial year for a clean transition. Start the banking conversion process within a few weeks of arrival.

Scenario 6: “My wife and I returned at different times. She came in April, I came in November. Do we have different statuses?”

Yes. Residential status is determined individually. Your wife may be Resident for that FY (crossed 182 days). You may still be NRI (less than 182 days). You’ll need to file separate ITRs with different residential statuses.

Quick Reference: NRI Status Checklist

Use this to figure out your status.

Step 1: Count your total days in India between April 1 and March 31 of the relevant financial year.

Step 2: Are you in India for 182 days or more?

Yes → You are Resident (go to Step 4)
No → Go to Step 3

Step 3: Did you leave India for employment abroad, or are you an Indian citizen/PIO visiting India with Indian income ≤ ₹15 lakh?

Yes → You are Non-Resident (NRI) for this financial year. Done.
No → Check if you were in India for 60+ days this year AND 365+ days in preceding 4 years. If yes → Resident. If no → NRI.

Special check for high-income visitors: If you’re an Indian citizen/PIO visiting India with Indian income > ₹15 lakh, check if you were in India for 120+ days AND 365+ days in preceding 4 years. If yes → RNOR.

Step 4 (if Resident): Were you NRI for 9 out of the last 10 years, OR were you in India for 729 days or less in the preceding 7 years?

Yes to either → You are RNOR
No to both → You are ROR (Resident and Ordinarily Resident – worldwide income taxable)

Step 5 (Deemed Resident check): Are you an Indian citizen with Indian income > ₹15 lakh who is not a tax resident of any other country?

Yes → You are Deemed Resident (RNOR) regardless of days in India

FAQ: Real Questions from Our Community

Q: Do both the arrival date and departure date count as days in India?

Yes. If you land on January 1 and fly out on January 10, that’s 10 days in India, not 9.

Q: What if I’m in India for exactly 182 days?

You are a Resident. The law says “182 days or more.” 182 qualifies.

Q: Do days spent in transit (at Indian airports but not clearing immigration) count?

No. Only days where you clear immigration and are physically present in India count. Transit through an Indian airport without clearing immigration does not count.

Q: I have an NRE account but I’ve been living in India for 2 years. Is that a problem?

Yes. This is a FEMA violation. You should have converted your NRE account to a resident account when you became a Resident under FEMA. Do it immediately. The longer you wait, the bigger the compliance risk. Penalties under FEMA can be up to 3 times the contravention amount.

Q: My parents send me money abroad from India. Does this affect my NRI status?

No. Receiving money from India doesn’t affect your residential status. Your status is determined by days in India (Income Tax) and purpose/intent of stay (FEMA).

Q: Can I choose to be NRI or Resident?

No. Residential status is determined by facts (days, purpose, intent). It’s not a choice. You can plan around it (timing your return, managing your days), but you can’t just declare a status.

Q: If I became a US citizen, am I still an “NRI”?

Under FEMA, an NRI is specifically an Indian citizen residing abroad. If you’ve taken US citizenship, you are no longer an Indian citizen. You would be classified as a “Person Resident outside India” but not technically an NRI. If you hold an OCI card, you have specific rights under FEMA. Under Income Tax, your citizenship doesn’t matter – only your days in India determine your residential status.

Q: Does working remotely for a US company from India affect my status?

Yes. If you’re physically sitting in India, those days count as days in India. It doesn’t matter that your employer is foreign or your salary is in dollars. Physical location is what counts.

Q: What about the 183-day rule I keep hearing about?

183 days is the US Substantial Presence Test threshold. India uses 182 days. Different countries, different rules. Don’t confuse them.

My Take: Keep It Simple

I know this is a lot of information. It can feel overwhelming.

But here’s what I tell every NRI in our community:

For most NRIs living abroad for employment, it’s actually simple.

If you’re in India for less than 182 days in a financial year, you’re NRI under both laws. Done.

The complications arise in specific situations – high Indian income, frequent visits, return planning, Gulf-based NRIs with no local tax, dual residency scenarios.

For those situations, get professional help. A good CA who understands NRI taxation is worth every rupee.

We have a network of tax consultants who work specifically with returning NRIs, and members share recommendations in our community regularly.

The one thing I’d urge everyone to do: track your days. Every India trip.

Every entry and exit stamp. Keep a simple log. It takes 2 minutes per trip and can save you from a world of pain at tax time.

Disclaimer: This article is for informational and educational purposes only. Tax and FEMA regulations are complex and change frequently. The information here is based on laws as of early 2026 and may change with the implementation of the Income Tax Bill 2025. Always consult a qualified chartered accountant and/or FEMA expert for advice specific to your situation. Do not make financial decisions based solely on this article.

If you’re figuring out your residential status or planning your return to India, join our WhatsApp community at https://backtoindia.com/groups – 20,000+ NRIs helping each other with real, lived experience. It’s free and volunteer-run.

NRI – What It Really Means (And What It Doesn’t) in 2026