NRI Income tax issue

Hi

Please help me with this information

 

I live outside India.As far as I know I am considered non-NRI only if I have spent more than 182 days in India. But what if this 182 days is across continuous financial years ? Like I spent 80 days in current financial year and another 102 days in next financial year. This 182 days is continuous. Will I be taxable in India in that case ?

Replies (3)
Quick Summary
This discussion clarifies the rules for Non-Resident Indians (NRIs) regarding tax residency in India. It explains that spending 182 days across two consecutive financial years does not automatically make you a resident for tax purposes. The summary outlines the conditions for being considered a resident versus a non-resident, and how this distinction affects your tax liability on income earned in India and abroad.

Will I be taxable in India for the income abroad ?

According to provisions of sec 6(1), an individual has to be in India for 182 days or more in relevant previous year to become a resident. Staying for more than 182 days across 2 financial years is not considered as resident of India. To know whether the income you earned in abroad is taxable, you must first determine whether you are ordinary or not ordinary resident.
A person is considered to be resident

1- If he is in India for a period of 182 days or more during the previous year; or

2. If he is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding that year.

The period of 60 days as mentioned in (2) above shall be substituted with 120 days, if an Indian citizen or a person of Indian origin whose total income, other than income from foreign sources, exceeds Rs. 15 lakhs during the previous year from FY 2020-21.

If you satisfy these conditions, You are a Resident. Otherwise you will be treated as a Non Resident.
If you are Non Resident, you'll be taxable in India for the income earned or accrued in India and not on total income.

But if you are resident, then you are liable to pay tax on your total income, and you can take advantage of DTAA.

I hope this help.

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