Are you an NRI?

The key rules determining your eligibility are based on how long you stay in India and your earnings here.

According to the Foreign Exchange Management Act (FEMA), an NRI is someone who lives outside India but is a citizen of India or a person of Indian origin (POIS.)

The Income-tax Act adds that:

  • You are considered a resident of India if you stay there for at least 182 days in a fiscal year.
  • You are still regarded as a resident if you spend 60 days or more in India during the fiscal year and 365 days or more in the four years prior to the current fiscal year.

Amendments and Exceptions

As per the changes made in the Finance Act 2020:

  • If your income, excluding income from foreign sources, is more than ₹15 lakh, the 60-day threshold mentioned above extends to 120 days.

  • Additionally, an Indian citizen earning over ₹15 lakh and not liable to pay tax in any country is deemed a resident under new Section 6(1A).