Returning to India? How RNOR status can help NRIs save tax on foreign income
New Delhi, Aug. 12 -- An individual's residential status is the starting point for determining taxability under Indian tax law. For expatriates and non-resident Indians (NRIs) returning to India, the tax system provides a transitional category called Resident but Not Ordinarily Resident (RNOR).
This status can offer returning NRIs a limited window to settle back into India without immediately bringing certain foreign-sourced income and assets into the Indian tax net. However, the benefits apply only if specific conditions are met.
Under Indian tax law, individuals broadly fall into three residential categories:
To qualify for RNOR status, a returnee must satisfy at least one of two statutory tests:
To illustrate, consider Mr X, who sp...
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