Impact of Staying in India over 182 Days for NRIs: Tax Implications Explained

Discover what happens to NRI tax status if they stay in India for over 182 days and implications for global income.

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If an NRI stays in India for more than 182 days, their residency status changes to Resident Indian for that financial year. This impacts their tax liabilities as they then become liable to pay tax on their global income in India. It's crucial to track your stay in India to manage your residency status and tax obligations effectively.

FAQs & Answers

  1. What does NRI stand for? NRI stands for Non-Resident Indian, which refers to an Indian citizen or person of Indian origin who is residing outside India.
  2. How is residency status determined for NRIs? Residency status for NRIs is determined based on the duration of their stay in India during a financial year, specifically if they stay for more than 182 days.
  3. What are the tax implications of becoming a Resident Indian? Once classified as a Resident Indian, individuals are liable to pay tax on their global income in India, unlike NRIs who are only taxed on income earned within India.
  4. How can NRIs track their stay in India? NRIs can track their stay in India by maintaining a record of their travel dates, including entry and exit, to ensure compliance with residency and tax regulations.