Faq NRI Residential Status Section 6
India-specific preparation guide
Faq NRI Residential Status Section 6 needs current-law checks, portal verification, documents and a precise brief before you compare experts on the WorkIndex work index.
Post Your Requirement - FreeSection 6 Residency Status Criteria (AY 2026-27)
Determining whether an individual qualifies as a Non-Resident Indian (NRI) or Resident but Not Ordinarily Resident (RNOR) is governed by Section 6 of the Income-tax Act, 1961. Use this verified guide to check physical stay rules.
| Residential category | Stay criteria in India (FY) | Taxation impact |
|---|---|---|
| Resident & Ordinarily Resident (ROR) | Stay of 182 days or more in India during the FY, OR stay of 60 days or more in the FY AND 365 days or more in the 4 preceding FYs. | Global income is taxable in India under Section 5. |
| Non-Resident Indian (NRI) | Stay of less than 182 days in India during the FY (and does not meet the 60 days + 365 days test). | Only income received, accrued, or deemed to receive/accrue in India is taxable. |
| Indian Citizen / PIO Visitor Exception | The 60-day threshold is extended to 182 days if Indian-sourced income is up to Rs. 15 Lakh, and to 120 days if Indian-sourced income exceeds Rs. 15 Lakh. | If stay is between 120 and 181 days, they are classified as RNOR. |
| Deemed Resident (Section 6(1A)) | Indian citizen with Indian-sourced income > Rs. 15 Lakh who is not liable to tax in any other country. Automatically RNOR. | Foreign income is not taxable in India. Only Indian-sourced income is taxed. |
What a serious tax expert should verify
- Physical stay day-wise log based on passport entry and exit stamps (both arrival and departure days count as full days).
- Financial Year basis: Days of stay must be calculated on a Financial Year basis (April 1 to March 31) and not the Calendar Year.
- RNOR (Resident but Not Ordinarily Resident) benefits: Active if non-resident in 9 out of 10 preceding years, OR stay in India <= 729 days in 7 preceding years.
- Transition under Income Tax Act, 2025: Verify if new definitions affect Tax Year 2026-27 stay requirements.
Documents to prepare for verification
- Passport (all pages with entry/exit stamps for the last 5 financial years).
- FCCS / residency proof in the foreign country.
- Annual Information Statement (AIS) and Form 26AS to track Indian income transactions.
- Detailed day count excel sheet reconciling passport stamps.
Faq NRI Residential Status Section 6: year and source check
Last fact-checked: 18 June 2026.
AY 2026-27 means FY 2025-26 income and is filed under the Income-tax Act, 1961. Tax Year 2026-27 means FY 2026-27 income under the Income Tax Act, 2025. Do not mix the two.
Verify stay days, TRC validity, DTAA rates, NRO interest, and Form 15CA/15CB requirements against official CBDT guidelines, notifications, and portal utilities before taking a filing position.
FAQs
How is the number of days of stay in India calculated?
The calculation is based on actual physical stay in India during the financial year (April 1 to March 31). Both the day of arrival and day of departure in India are counted as full days of stay.
What is the deemed residency rule under Section 6(1A)?
Introduced in the Finance Act, an Indian citizen is deemed a resident of India if their Indian-sourced income exceeds Rs. 15 Lakh and they are not liable to tax in any other country by reason of domicile, residence or similar criteria. They are classified as RNOR.
Is global income taxable for an RNOR in India?
No. Resident but Not Ordinarily Resident (RNOR) individuals are taxed in India only on Indian-sourced income (received or accrued in India) and income from a business controlled or profession set up in India. Their foreign-sourced income is exempt.
Frequently Asked Questions
1. What is the tax significance of NRI Residential Status Section 6 under the Income Tax Act?
NRI Residential Status Section 6 represents key provisions under the Income Tax Act governing deductions, exemptions, tax rebates, or notice assessments. In FY 2025-26, all tax computations must follow the default New Tax Regime unless you actively opt for the Old Tax Regime.
2. How does NRI Residential Status Section 6 apply under the default New Tax Regime for FY 2025-26?
Under the New Tax Regime, tax slabs are broadened (up to ₹4 lakh is Nil, and ₹4L to ₹8L is 5%, up to a maximum rate of 30% above ₹24 lakh). Standard deduction is enhanced to ₹75,000. Rebate under Section 87A is available up to ₹60,000 for taxable income up to ₹12,00,000, which heavily influences calculations for NRI Residential Status Section 6.
3. Are there specific deductions or exemptions available for NRI Residential Status Section 6?
Deductions or exemptions for NRI Residential Status Section 6 depend on the chosen tax regime. Under the Old Tax Regime, deductions like Section 80C, 80D, and home loan interest (Section 24b) can be claimed, but these are generally disallowed under the default New Tax Regime.
4. What is the Section 87A rebate limit for FY 2025-26?
Under the New Tax Regime, resident individuals with taxable income up to ₹12,00,000 get a full rebate up to ₹60,000, making tax liability zero. Under the Old Tax Regime, the rebate is available only for income up to ₹5,00,000 (maximum rebate ₹12,500).
5. What is the LTCG tax rate on equity shares and mutual funds?
Under Section 112A, Long-Term Capital Gains (LTCG) on listed equity shares and equity-oriented mutual funds are taxed at a flat rate of 12.5% on gains exceeding ₹1.25 lakh per financial year.
6. What is the STCG tax rate on equity shares under Section 111A?
Short-Term Capital Gains (STCG) on listed equity shares and equity mutual funds are taxed at a flat rate of 20% under Section 111A if Securities Transaction Tax (STT) is paid.
7. What is the tax treatment of dividend income?
Dividend income is fully taxable in the hands of the receiver at their applicable income tax slab rates. The paying company will deduct TDS at 10% under Section 194 if the dividend exceeds ₹5,000 in a FY.
8. What is Section 80C under the Old Tax Regime?
Section 80C allows deductions up to ₹1,500,000 for investments in PPF, EPF, ELSS, LIC premium, principal repayment of home loan, and school tuition fees. This deduction is NOT available under the New Tax Regime.
9. What is Section 80D medical insurance deduction?
Section 80D allows deduction for health insurance premium: up to ₹25,000 for self, spouse, and children, and an additional ₹25,000 for parents. If parents are senior citizens, the deduction limit increases to ₹50,000. It is only available under the Old Tax Regime.
10. What are the rules for filing a belated return under Section 139(4)?
If you miss the primary ITR due date, you can file a belated return by December 31 of the Assessment Year. It attracts a late fee of ₹5,000 (₹1,000 if income is <= ₹5 lakh) and interest under Section 234A.
11. What is Section 148 of the Income Tax Act?
Section 148 authorizes the Assessing Officer to issue a notice to assess or reassess income that has escaped assessment. A show-cause notice under Section 148A must first be issued to give the taxpayer an opportunity to reply before reopening.
12. What is the tax rate on speculative business income (like intraday equity)?
Speculative business income is taxed at normal slab rates. However, speculative losses can only be set off against speculative profits and can be carried forward for only 4 assessment years.
13. What is the presumptive taxation scheme under Section 44AD?
Small businesses with turnover up to ₹2 crore (or ₹3 crore if receipts are 95% digital) can declare presumptive taxable profits at 8% of turnover (6% for digital receipts) without maintaining books of accounts or undergoing audits.
14. What is presumptive taxation for professionals under Section 44ADA?
Professionals with gross receipts up to ₹50 lakh (or ₹75 lakh if receipts are 95% digital) can declare 50% of receipts as taxable income under Section 44ADA.
15. How is rental income taxed under the head 'Income from House Property'?
Rental income is taxed on its Net Annual Value (Rent received minus Municipal Taxes). A standard deduction of 30% under Section 24(a) is allowed. Home loan interest under Section 24(b) can be deducted up to ₹2,00,000 (only under the Old Regime for self-occupied properties).