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Quick answer: RNOR means Resident but Not Ordinarily Resident. It is a tax status that can apply to a returning NRI in the first years after they come back. While you are RNOR, income that you earn abroad is generally not taxed in India, with exceptions. There is no fixed number of tax free years, because RNOR is tested again every year. This guide explains the tests, shows day count examples and separates tax status from FEMA banking status.
This is general information and not tax advice. The Income-tax Act, 2025 applies from tax year 2026-27 and the Income-tax Act, 1961 governs earlier years. Section numbers and thresholds below come from summaries of the Act, so check them on the income tax portal and with a chartered accountant before you plan. This guide is independent and has not been reviewed by a chartered accountant.
Three statuses, in order
| Status | What it means in outline |
|---|---|
| Non resident (NR) | Foreign income is not taxed in India. Indian income is. |
| Resident but not ordinarily resident (RNOR) | Indian income is taxed. Foreign income is generally not, unless it comes from a business controlled in India or a profession set up in India. |
| Resident and ordinarily resident (ROR) | Global income is taxed in India. |
RNOR applies only if you are first a resident under the day tests below. It is a sub category of resident, not a different kind of non resident.
Step 1: are you resident this year?
- You are resident if you were in India for 182 days or more in the tax year, or for 60 days or more in the year and 365 days or more in the four years before it (see the summary of section 6 and the department’s page).
- The 60 day limb is switched off for an Indian citizen who leaves India in the year for employment abroad or as crew of an Indian ship.
- It is also replaced by 120 days for an Indian citizen or person of Indian origin who visits India, if their Indian income is above Rs 15 lakh.
- An Indian citizen whose Indian income exceeds Rs 15 lakh and who is not liable to tax in any other country because of domicile, residence or a similar test can be treated as resident, even without meeting the day tests.
Step 2: are you RNOR or ROR?
Once you are resident, RNOR applies if either of these is true:
- You were non resident in 9 of the 10 years before this one, or
- You were in India for 729 days or fewer in the seven years before this one.
Two more routes exist for Indian citizens or people of Indian origin with Indian income over Rs 15 lakh who stayed 120 days or more but under 182 days, and for citizens treated as resident under the Rs 15 lakh rule. Either test is enough, and both are tested afresh every year. Check the exact wording of section 6 before you rely on a threshold.
The department’s own non resident FAQ states the same two RNOR tests, nine of the ten preceding years as a non resident or 729 days or less in the preceding seven years, says section 6(13) of the 2025 Act is similar to section 6(6) of the 1961 Act, and says the deemed residence rule for citizens with Indian income above Rs 15 lakh is section 6(7). It also says the 2025 Act’s residence rules apply to tax years beginning on or after 1 April 2026. Some commentary sites quote different RNOR tests, so use the department’s FAQ and the Act.
What RNOR changes
- Income that accrues or arises outside India is taxable for a resident but, for an RNOR, only if it comes from a business controlled in India or a profession set up in India (see section 5 and the department’s page).
- Income received in India, or that accrues or arises in India, stays taxable, as it does for any resident.
- Foreign income is not treated as received in India merely because it appears in an Indian balance sheet.
Examples with day counts
These are illustrations with assumed facts,. They assume the person was non resident for the previous 12 years and is not a deemed resident. Tax year 2026-27 runs from 1 April 2026 to 31 March 2027. Count arrival and departure days as your accountant advises.
| Person | Days in India in 2026-27 | Status |
|---|---|---|
| A arrives on 1 June 2026 and stays | 304 | Resident. Non resident in 9 of the last 10 years, so RNOR. |
| B arrives on 1 October 2026 and stays | 182 | Resident on the 182 day test. RNOR. |
| C arrives on 1 December 2026 and stays | 121 | Non resident for 2026-27 under the day tests. Likely resident from 2027-28, probably RNOR. |
| D was non resident in only 7 of the last 10 years but spent 600 days in India across the last seven years | Resident | RNOR, because 600 is 729 or fewer. Either condition is enough. |
The length of RNOR depends on the count in each year and not on a set number of years.
Which Act applies
| Period | Framework |
|---|---|
| Income for FY 2025-26 and earlier | Income-tax Act, 1961 |
| Income for tax year 2026-27 onward | Income-tax Act, 2025 |
The 2025 Act speaks of a tax year, replacing the previous year and the assessment year (see this explainer). The look back years for the 9 in 10 and 729 day tests can include years under the 1961 Act.
FEMA status is a separate test
FEMA looks at whether you are a person resident in India, with a test that turns on days in the preceding financial year and on the purpose and intent of your stay (see the department’s comparison page). It has no RNOR concept. You can be RNOR for tax and resident under FEMA at the same time, and the reverse. Bank accounts follow FEMA status. See the guide to RFC accounts for returning NRIs and the NRE vs NRO guide.
What not to assume
- There is no fixed two or three year tax free window.
- RNOR does not exempt Indian income, income received in India or foreign income from a business controlled in India.
- RNOR can end quickly, as the look back tests move forward each year.
- RNOR is not the same as FEMA status.
Plan with a chartered accountant before you move. For the relocation checklist, see the guide to returning to Navi Mumbai, and for filing, see the NRI income tax return guide. For treaty paperwork, see the guide to Form 41 (formerly Form 10F).
Frequently Asked Questions
What is RNOR status?
Resident but Not Ordinarily Resident. It is a tax status for someone who is resident in India but meets one of the RNOR tests, under which foreign income is generally not taxed in India unless it comes from a business controlled in India or a profession set up in India.
How long does RNOR last?
There is no fixed period. It depends on the day counts and on whether you were non resident in 9 of the 10 earlier years, or in India for 729 days or fewer in the previous seven years, and it is tested every year.
Is RNOR the same as FEMA residential status?
No. FEMA uses its own test and has no RNOR category. Your bank account status follows FEMA, and your tax status follows the Income-tax Act.
Is foreign income always tax free for an RNOR?
No. Income from a business controlled in India or a profession set up in India is taxable, and income received in India or arising in India stays taxable.
Which Act applies to my return?
Income for FY 2025-26 and earlier falls under the 1961 Act. Income for tax year 2026-27 onward falls under the 2025 Act.
Who should I ask?
A chartered accountant, since thresholds and section numbers need checking against the Act for your tax year.
Sources
| Point | Source |
|---|---|
| Residential status and RNOR | Section 6 summary and Income Tax Department |
| Scope of income | Section 5 summary and Income Tax Department |
| Non resident FAQ | e-filing portal |
| FEMA comparison | Income Tax Department |
Reviewed on 30 October 2026. Check the exact wording of sections 5 and 6, the Rs 15 lakh and 120 day rules and the section numbers for your tax year on the income tax portal or with a chartered accountant. This guide has not been reviewed by a chartered accountant.
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