RNOR calculator: check if you qualify and how long it lasts
RNOR (Resident but Not Ordinarily Resident) is a transitional tax status for returning NRIs that exempts most foreign-sourced income from Indian tax. Eligibility is based on past India days and NRI years. The RNOR window typically lasts two years and can be three years in specific cases.
RNOR lasts 2 years in most cases
You qualify as RNOR if you were NRI in 9 of the past 10 years, OR if your total India stay in 7 of the past 10 years was 729 days or fewer. During RNOR, foreign-sourced income is generally exempt from Indian income tax.
Key points
- Two eligibility tests — RNOR applies if you were NRI in 9 of the last 10 years, OR if India days in 7 of the last 10 years were 729 or fewer.
- Foreign income exempt — During RNOR, income earned and received outside India is generally not taxable in India.
- Plan before returning — Restructure overseas investments, make large transfers and redesignate accounts before the RNOR window closes.
How to check RNOR eligibility
Step 1: Count your India days for each financial year (April–March) for the last 10 years.
Step 2: Apply test 1 — were you NRI (India days below the threshold) in 9 or more of those 10 years? If yes, you qualify as RNOR.
Step 3: If not, apply test 2 — was your total India stay across any 7 of those 10 years 729 days or fewer? If yes, you also qualify.
RNOR status applies from the year you become Indian-resident again. It typically lasts two years before you become Ordinarily Resident (OR) and all worldwide income becomes taxable.
What is and is not exempt during RNOR
Exempt: interest on NRE and FCNR deposits, foreign salary or business income earned and received outside India, overseas rental income, foreign capital gains.
Taxable even during RNOR: India-source income (NRO interest, Indian rental income, Indian capital gains), income from a business or profession set up in India.
Plan: use the RNOR window to repatriate foreign savings, restructure NRE to RFC account and review India investment portfolio.
Frequently asked questions
Does RNOR apply automatically?
Yes, based on day counts. You do not need to apply — simply report the correct status in your ITR. An incorrect status leads to under- or over-payment of tax.
Can RNOR last three years?
In edge cases — where you qualify under both tests simultaneously — RNOR may extend to three years. This is uncommon. Verify with a chartered accountant for precision.
What happens after RNOR ends?
You become Ordinarily Resident (OR). All worldwide income — including NRE interest — becomes taxable in India. Restructure accounts and investments before OR status begins.