Who qualifies as Resident but not Ordinary Resident Indian?
If you have spent a large number of years overseas and have only recently move back to India, you may be a Resident but not Ordinary Resident (RNOR). To qualify as RNOR, you should be a NRI in nine out of the ten previous years preceding that year or been in India for a period of 729 days or less for 7 previous years receding the current financial year.
RNORs are usually those foreign nationals who are liable to pay tax solely on the total income they earn within India. RNORs are liable to pay tax in India if they fulfil the following criteria:
• If the individual in question resides in India for an equivalent of 182 days or beyond over the duration of the taxation year in India, then this individual will be deemed to be a resident of India for the purpose of taxation, and the total of his or her income earned within India will be taxable by law.
• If the individual in question has been residing in India for a minimum of 60 days, but not more than 182 days, and has been residing in the country over the duration of the previous 4 years prior to the taxation year for a total equivalent to 365 days or beyond, then he or she will be deemed to be an Indian resident for the purpose of taxation, and the total of his
or her income earned within India will be taxable by law.
For an individual to be considered a RNOR, the following conditions are required to be met:
• The individual must not have been residing within India for at least 9 out of the previous 10 years of taxation.
• The individual has resided within India for a total duration of 729 days or below during the 7 years prior to the taxation year.
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