Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What the 120-day rule says
The visiting-NRI relaxation normally lets you stay up to 181 days. But if your total Indian income exceeds ₹15 lakh in the year, that figure is cut to 120 days. So a higher-earning NRI has a tighter day budget than one with little Indian income. ‘Indian income’ here means income that accrues or arises in India — not your foreign earnings.
Becoming resident, but only RNOR
Importantly, if you are caught by the 120-day rule you become a resident but are treated as RNOR — so your foreign income still stays outside Indian tax, only your Indian income is taxed. There is also a deemed-resident rule for Indian citizens with over ₹15 lakh of Indian income who are not liable to tax in any other country. Confirm the current thresholds per the Finance Act.
A worked example
Example: you earn ₹30 lakh of Indian rental and consulting income and visit India for 130 days, having spent 365+ days here over four years. Because Indian income exceeds ₹15 lakh, the 120-day rule applies — 130 days makes you a resident (RNOR) for that year. Had your Indian income been under ₹15 lakh, the 182-day limit would have kept you an NRI. Plan visits around this. See how many days you can stay. Our RNOR planning service can help.