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India tax

Tax residence: At least 182 days in tax year (1 April to 31 March). Special regime for new residents: Foreign-source income largely outside tax.

Checked against official sources on Change log

Tax residence

Special regimes for new residents

Special regime

Not ordinarily resident (RNOR) status: foreign-source income largely outside tax

Tax relief

Foreign-source income: RNOR relief
Details
  • On: Income received or accruing in India
  • Limit: ₹1.5M/yr ≈ $16k

A resident individual who is 'not ordinarily resident' in India is taxed on income received or accruing in India, and on foreign-source income only when it comes from a business controlled in or a profession set up in India. 1 2 3

Taxed on

Income received or accruing in India, plus foreign-source income derived from a business controlled in India or a profession set up in India.

Who it applies to

  • Resident in India for the tax year but non-resident in nine of the ten preceding years, or present in India 729 days or less in the seven preceding years.
  • Indian citizens or persons of Indian origin who visit India for 120 to 181 days with Indian-source income above INR 15 lakh (≈ $15,600) are treated as not ordinarily resident.
  • Indian citizens deemed resident because Indian income exceeds INR 15 lakh (≈ $15,600) and they are liable to tax nowhere else are treated as not ordinarily resident.
  • From tax years beginning on or after 1 April 2026 the rule is section 6(13) and section 5 of the Income-tax Act 2025; the criteria match the 1961 Act.

Exclusions

  • Ordinarily resident individuals (more than 729 days in the preceding seven years and resident in at least two of the preceding ten years) are taxed on worldwide income.

Limits

  • INR 1,500,000 a year (≈ $15,600) · Indian-source income (other than foreign-source) above which a citizen not taxed elsewhere is deemed resident, as RNOR

Days in the country

  • More than 729 days in preceding seven tax years · Presence above 729 days (together with residence in two of the ten preceding years) makes an individual ordinarily resident; 729 days or less gives RNOR status

Tax residence

RNOR status is annual and tests look back to years governed by the 1961 Act.

Visas

Visa type is irrelevant; status depends on days of presence and past residence.

Other taxes

Goods and services tax, surcharge and cess apply separately.

Checked against official sources on Change log

Standard rules and foreign-source income

Standard rules

India: residence tests and worldwide taxation of residents

Worldwide income

Details
  • Limit: ₹1.5M/yr ≈ $16k

An individual is resident in India with 182 days or more in the tax year, or 60 days or more in the year plus 365 days or more in the preceding four years; residents are taxed on worldwide income unless not ordinarily resident, non-residents on Indian-source income. 1 2 3

Taxed on

Worldwide income for ordinarily resident individuals; Indian-source income for non-residents.

Who it applies to

  • Tax years beginning on or after 1 April 2026 fall under section 6 of the Income-tax Act 2025; earlier years stay under the Income-tax Act 1961.
  • Citizens leaving for employment abroad and visiting citizens or persons of Indian origin are resident only with 182 days or more; the 60-day test becomes 120 days for those with Indian income above INR 15 lakh (≈ $15,600).

Exclusions

  • Citizens with Indian income above INR 15 lakh (≈ $15,600) who are liable to tax in no other country are deemed resident regardless of days (treated as RNOR).

Limits

  • INR 1,500,000 a year (≈ $15,600) · Indian income (other than from foreign sources) above which the 120-day test and deemed residence apply to citizens

Days in the country

  • At least 182 days in tax year (1 April to 31 March) · Resident in India
  • At least 60 days in tax year, together with 365 days or more in the preceding four tax years · Alternative resident test
  • At least 120 days in tax year, together with 365 days or more in the preceding four tax years · Alternative test for citizens or persons of Indian origin with Indian income above INR 15 lakh (≈ $15,600)

Tax residence

Residential status is determined year by year; days in FY 2025-26 and earlier still count toward the look-back tests.

Visas

Tax residence is independent of visa or OCI status.

Other taxes

Surcharge, cess and goods and services tax apply separately.

Checked against official sources on Change log

Standard rules

India individual income tax rates, new regime (Income-tax Act 2025 section 202, as amended by Finance Act 2026)

Details
  • Limit: ₹400k/yr ≈ $4,170

Individuals pay income tax under the new regime of 0% up to INR 4 lakh (≈ $4,170), then 5% to 30% in INR 4 lakh (≈ $4,170) steps, with 30% above INR 24 lakh (≈ $25,000), unless they opt out. 3

Taxed on

Total income of the tax year of an individual, from tax years beginning on or after 1 April 2026.

Who it applies to

  • Default regime for individuals, HUFs, associations of persons and bodies of individuals; an option to opt out is available.

Exclusions

  • Surcharge, cess and the old-regime exemptions are outside this table.

Limits

  • INR 400,000 a year (≈ $4,170) · Nil up to INR 400,000 (≈ $4,170)
  • INR 800,000 a year (≈ $8,340) · 5% from INR 400,001 (≈ $4,170) to 800,000
  • INR 1,200,000 a year (≈ $12,500) · 10% from INR 800,001 (≈ $8,340) to 1,200,000
  • INR 1,600,000 a year (≈ $16,700) · 15% from INR 1,200,001 (≈ $12,500) to 1,600,000
  • INR 2,000,000 a year (≈ $20,900) · 20% from INR 1,600,001 (≈ $16,700) to 2,000,000
  • INR 2,400,000 a year (≈ $25,000) · 25% from INR 2,000,001 (≈ $20,900) to 2,400,000; 30% above INR 2,400,000 (≈ $25,000)

Tax residence

Applies to residents on worldwide income and to non-residents on Indian-source income.

Visas

Rates are the same for every visa type.

Other taxes

Surcharge, cess and GST apply separately.

Checked against official sources on Change log

VAT, social security and other taxes

Questions people ask

When do you become a tax resident in India?

At least 182 days in tax year (1 April to 31 March) (Resident in India); At least 60 days in tax year, together with 365 days or more in the preceding four tax years (Alternative resident test); At least 120 days in tax year, together with 365 days or more in the preceding four tax years (Alternative test for citizens or persons of Indian origin with Indian income above INR 15 lakh (≈ $15,600)); More than 729 days in preceding seven tax years (Presence above 729 days (together with residence in two of the ten preceding years) makes an individual ordinarily resident; 729 days or less gives RNOR status). Residential status is determined year by year; days in FY 2025-26 and earlier still count toward the look-back tests.

Who qualifies for Foreign-source income largely outside tax?

Resident in India for the tax year but non-resident in nine of the ten preceding years, or present in India 729 days or less in the seven preceding years. Visa type is irrelevant; status depends on days of presence and past residence.

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

Sources (3)

Official sources

  1. Non Resident FAQs under the Income Tax Act 2025 · Income Tax Department, Government of India (incometax.gov.in) · checked 2026-10-10
  2. Income-tax Act 1961, section 5 (scope of total income), as shown on the Income Tax Department site · Income Tax Department, Government of India (incometaxindia.gov.in) · checked 2026-10-12
  3. Income-tax Act, 2025 [30 of 2025] as amended by Finance Act, 2026 (sections 5, 6, 202) · Income Tax Department · checked 2026-10-10 · published 2026