Returning to India? RNOR status keeps foreign income tax-free (Section 6)

Why RNOR matters

An RNOR is taxed like a non-resident on foreign income — only Indian-source income (and income from a business controlled in India) is taxed. So your overseas salary settlement, foreign interest, dividends, rent and capital gains remain outside Indian tax for those years.

When you're RNOR

• You've been a non-resident for 9 of the last 10 years, or
• You were in India ≤ 729 days over the last 7 years.

Most returning NRIs qualify for 2–3 financial years before becoming an ordinarily resident taxed on global income.

Plan the window

• Take foreign lump sums, bonuses and asset sales while RNOR — they escape Indian tax.
• Keep NRE/FCNR deposits running — their interest stays exempt for a resident who is RNOR.
• Time your return date to stretch RNOR by a year where possible.

Who it helps

Every NRI planning to move back — the RNOR years are the best window to repatriate and reorganise wealth tax-free.