Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Who qualifies as RNOR
You are treated as RNOR for a year if you are a resident but meet either of these conditions:
- you were a non-resident in 9 of the 10 financial years before that year; or
- you were in India for 729 days or less across the 7 financial years before that year.
This is set out in Section 6(6) of the Income-tax Act, 1961 (and carried into Section 6 of the Income-tax Act, 2025). Two extra routes were added in 2020 for high-income Indian citizens and ‘deemed residents’ — confirm which applies to your facts. Not sure of your status? Start with how the day-count works.
Why RNOR matters when you return
RNOR is valuable because your foreign income — overseas salary, rent, interest, capital gains — generally stays outside Indian tax, except income from a business controlled from, or a profession set up in, India. It gives you a window to reorganise overseas assets, draw down foreign accounts and plan repatriation before your global income becomes taxable. (Note: NRE interest is tied to your FEMA status, which can change faster than your tax status.)
How long it lasts
For most returning NRIs, RNOR lasts about two to three financial years, depending on how long you were abroad. Once you cross the thresholds you become an ordinary resident and your worldwide income is taxable in India. Because the year of return is decisive, it is worth planning the timing — our returning NRI / RNOR planning service and NRI tax compliance service can map your window.