Residential Status

Residential Status – Residential status of an individual or entity determines the extent of their tax liability in India. Residents are taxed on their global income, whereas Non-Residents (NR) are taxed only on income earned or received in India. A Resident but Not Ordinarily Resident (RNOR) has partial tax liability on foreign income. The status depends on the person’s physical presence in India during the financial year—typically, anyone who stays in the country for 182 days or more is considered a resident.

Example: Categories include Resident, Non-Resident (NR), and Resident but Not Ordinarily Resident (RNOR), each with different tax implications