NRI (Non-Resident Indian) taxation :

NRI (Non-Resident Indian) taxation refers to the tax obligations of Indian citizens who live outside India. NRIs are subject to Indian tax laws in a manner different from resident Indians, and the taxability of their income depends on their residential status and the type of income they earn.

Determining Residential Status:

1. The first step in determining the tax liabilities of an NRI is to ascertain their residential status. The Income Tax Act of India defines residential status based on the number of days an individual stays in India during a particular financial year.
• Resident: If an individual stays in India for 182 days or more in a financial year or stays in India for at least 60 days in a year and 365 days or more in the last four years, they are considered a resident.
2. Non-Resident: If the individual does not meet the above criteria, they are considered an NRI.
• There is also a category called "Resident but Not Ordinarily Resident (RNOR)" which applies to individuals who were residents in India in 9 out of the last 10 years, or have stayed in India for 730 days or more in the previous 7 years, but do not meet the conditions for being ordinarily resident.