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Rule / Regulation · Residence

Resident vs RNOR vs Non-resident — who pays tax on what

By CA Rajat Agrawal Updated 03 Jul 2026

In plain language

StatusTaxed in India on
Resident & ordinarily residentWorldwide income (India + foreign)
Resident but not ordinarily resident (RNOR)Indian income + foreign income from a business controlled in / profession set up in India
Non-resident (NRI)Only Indian income (received or accruing in India)

This single table drives most NRI planning — the goal is usually to keep genuine foreign income outside the Indian net while correctly paying tax on Indian-sourced income (rent, capital gains, interest).

Frequently asked questions

What is RNOR status?
Resident but Not Ordinarily Resident — a transitional status where you are taxed on Indian income plus only foreign income from an India-controlled business/profession, sheltering most foreign income.
C
CA Rajat Agrawal
Chartered Accountant, EaseValue · Reviewed 03 Jul 2026
This explainer is prepared and reviewed by EaseValue's tax team, based on the text of the Income-tax Act, 2025 (as amended by the Finance Act, 2026).
Disclaimer: This page explains the law in general terms for education and is not professional advice. The Income-tax Act, 2025 takes effect from 1 April 2026; provisions, thresholds and interpretations may change. Please confirm your specific position with our team before acting.

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📂 Residential Status & NRI Taxation under the Income-tax Act, 2025 (overview)

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