{"id":245,"date":"2025-12-29T09:28:09","date_gmt":"2025-12-29T09:28:09","guid":{"rendered":"https:\/\/acefinancialservice.com\/blog\/?p=245"},"modified":"2025-12-29T09:28:09","modified_gmt":"2025-12-29T09:28:09","slug":"why-your-residency-status-isnt-as-simple-as-you-think","status":"publish","type":"post","link":"https:\/\/acefinancialservice.com\/blog\/why-your-residency-status-isnt-as-simple-as-you-think\/","title":{"rendered":"Why Your Residency Status Isn\u2019t as Simple as You Think"},"content":{"rendered":"

There\u2019s a very thin line between being a Resident<\/strong> or a Non-Resident<\/strong> and surprisingly, that line is not the same across all laws. Confused whether you are a Resident or an NRI?<\/p>\n

Check your residency status under both the Income Tax Act & FEMA in under 30 seconds here: https:\/\/tally.so\/r\/J91j47<\/a><\/p>\n

Most people assume residency is a simple label. It isn\u2019t. You could be a Resident under the Income Tax Act and Non-Resident under FEMA at the same time. And that\u2019s where most mistakes (and tax issues) begin.<\/p>\n

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\ud83d\udccc Residency under the Income Tax Act (Purely based on physical presence. Passport or citizenship does NOT matter.)<\/h2>\n

Step 1: Resident or Non-Resident?<\/h3>\n

You are treated as a Resident in a financial year if any one of the following is satisfied:<\/p>\n

1\ufe0f\u20e3 You were in India for 182 days<\/strong> or more during the relevant year, OR<\/strong><\/p>\n

2\ufe0f\u20e3 You were in India for 365 days or more<\/strong> in the last 4 years and 60 days or more<\/strong> in the relevant year.<\/p>\n

\u26a0\ufe0f Important exception (often missed):<\/p>\n

For Indian citizens \/ PIOs visiting India whose Indian income (excluding foreign income) exceeds \u20b915 lakh, the 60-day condition becomes 120 days.<\/p>\n

If neither condition is met, you are a Non-Resident (NR)<\/strong> for tax purposes.<\/p>\n

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Step 2: If Resident, are you ROR or RNOR?<\/h3>\n

Once classified as Resident, the law checks two additional conditions:<\/p>\n

1\ufe0f\u20e3Resident in at least 2 out of the last 10 years, AND<\/strong><\/p>\n

2\ufe0f\u20e3Stayed in India for 730 days or more during the last 7 years.<\/p>\n