Tax Map · Relocation rankings

Tax residency in India

How to become a tax resident — and how hard it is to leave.

How to become a tax resident

Typically after 182+ days of presence in a year — or any of:

• Physically present in India for 182 days or more in the relevant financial year (Section 6(1)(a) IT Act)
• Physically present in India for 60 days or more in the relevant financial year AND 365 days or more during the 4 financial years immediately preceding that year (Section 6(1)(c) IT Act)
• For Indian citizens or persons of Indian origin coming on a visit to India: 60‑day test above is relaxed to 120 days where total income (other than foreign‑source income) exceeds INR 15 lakh in the year (Finance Act 2020 proviso to Section 6)[7]
• Indian citizen deemed resident if total income (other than foreign‑source income) exceeds INR 15 lakh in the year AND the individual is not liable to tax in any other country by reason of domicile, residence or similar criteria (Section 6(1A) ‘deemed resident’)[7]
• Resident but not ordinarily resident (RNOR) and resident and ordinarily resident (ROR) sub‑tests apply only after basic residence is met, based on number of years resident and days of stay in prior years (tail tests for scope of taxation)[2][4]

India does not offer residence- or citizenship-by-investment or a digital-nomad visa; a self-funded foreigner generally can only stay medium term on business/tourist e‑visas or obtain longer residence via a sponsored employment visa from an Indian company meeting strict conditions.

India uses day‑count and a specific deemed‑resident rule; you generally cease residency by reducing Indian presence below the thresholds and ensuring you are tax‑liable elsewhere, but Indian citizens with high Indian‑source income can still be deemed residents if not taxed abroad.

“An individual will be treated as a Resident in India in any previous year if he / she satisfies any of the following conditions: 1. If he / she is in India for a period of 182 days, or more during the previous year or 2. If he / she is in India for a period of 60 days or more during the previous year and 365 days or more for 4 years immediately preceding the previous year. An individual who does not satisfy both the conditions as mentioned above will be treated as Non-Resident in that previous year. ... The Finance Act, 2020, w.e.f. Assessment Year 2021-22 has amended the above exception to provide that 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 ₹ 15 lakh during the previous year. The Finance Act, 2020 has also introduced new Section 6(1A) which is applicable from Assessment Year 2021-22. It provides that an Indian citizen earning Total Income in excess of ₹ 15 lakh (other than income from foreign sources) shall be deemed to be Resident in India if he / she is not liable to pay tax in any country.” — Income Tax Department, Government of India

Estimate — confirm against the linked sources. See methodology.