Who is NRI as Per Income Tax?

Wondering

who is an NRI as per income tax act

. Let me help you. For the purposes of income tax, the term "NRI" stands for Non-Resident Indian.

Who is a Non Resident as Per Income Tax Act?

The Income Tax Act, 1961 defines the residential status of an individual for each financial year based on the physical presence of the individual in India during that year.

An individual is considered a resident of India for a particular financial year if he/she satisfies any of the following conditions:

• The individual is in India for 182 days or more during the financial year.

• The individual is in India for 60 days or more during the financial year and has been in India for 365 days or more in the preceding four financial years.

An individual who does not meet any of the above conditions is considered having an NRI status as per income tax for that financial year.

Resident but Not Ordinarily Resident (RNOR): 

An individual who satisfies any of the following conditions is considered an RNOR:  

• The individual is a non-resident in India in nine out of the ten preceding financial years.

• The individual is in India for 729 days or less during the seven preceding financial years.

For tax purposes, NRIs are subject to tax on income earned or received in India, as well as certain incomes deemed to accrue or arise in India. However, income earned outside India and received outside India by NRIs is generally not taxable in India.

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NRI as per income tax is a bit confusing concept. As per Income Tax Act, even if you are living inside India and working outside, you can be considered as an NRI. There are certain eligibility criteria which an individual needs to fulfil as an NRI. In India, NRIs are supposed to pay taxes just like Residents in India. Let us know more about who is NRI as per Income Tax Act.

Who is NRI as per Indian Income Tax?

The Foreign Exchange Management (FEMA) stated the definition of who is an NRI for Indian income tax. 

You can be considered as a resident of India if:

• You live in India for at least 182 days in a fiscal year.

• You have lived for 60 days in a year and 365 days in four years.

If an Indian citizen leaves India in any year for employment or by becoming a crew member of Indian merchant ship for a period of 60 days by staying in India for 182 days or when an Indian citizen or a person of Indian origin (PIO) coming in India for 60 days and stayed outside India for 182 days can be considered as a resident of India .

If you satisfy the above conditions, you are a Resident Indian. Or else, you are considered as a deemed Non- Resident Indian (NRI).

• If you are living outside India for 9 years out of the previous ten years preceding the year of consideration or

• If you stayed in India for 729 days or less during 7 previous years preceding the year of consideration, 

you are considered as RNOR (

I hope you understand now who is NRI as per income tax.

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