Free RNOR status calculator: check 729-day rule, 9-of-10-year test, Rs. 15 lakh trigger, RNOR period length, and best return date before you move back to India.
Your details
Will your Indian income exceed ₹15 lakh in the move year?
If yes, the Finance Act 2020 120-day rule can apply (instead of 182 days).
Your RNOR projection
Enter your move date and yearly days, then calculate.
Simplified estimate for planning only — confirm exact numbers with a cross-border CA before making decisions.
Withdrawing 401(k) funds during your RNOR window (the first 2-3 years after return) avoids Indian tax on that income entirely, since foreign-sourced withdrawals aren't taxed during RNOR status — though US taxes and a possible 10% early-withdrawal penalty (if under 59½) still apply. This timing can save 30-40% in combined taxes compared to withdrawing after becoming a full ROR.
RNOR (Resident but Not Ordinarily Resident) status typically lasts up to 2-3 financial years after your return, based on how many of the preceding 10 years you were a non-resident. During this window, foreign income and capital gains are generally not taxed in India, making it the single biggest tax-planning opportunity for returning NRIs.
No—and the confusion comes from two different systems. FEMA 'NRI' for banking and Income-tax NRI/RNOR/ROR use different day-count tests. You may be redesignating bank accounts as resident under FEMA while still enjoying RNOR tax treatment for 2-3 years—but you cannot be RNOR and NRI under the same tax test in the same financial year.
The 729-day test counts total days in India across the 7 financial years before your return year (April-March blocks, not calendar years). Alternatively, if you were non-resident in 9 of the prior 10 years, you qualify regardless of the 729 count. Long visits home during your years abroad can silently eat the 729 buffer—pull passport stamps before assuming you get 3 RNOR years.
Yes—India counts the whole April-March financial year you land in, even if you were abroad until October. That full year enters your 7-year and 10-year lookbacks. Arriving in January vs September can change how many RNOR years you retain—model both dates in the RNOR calculator before booking tickets.
Gather three numbers: days in India this financial year, days in India over the prior 7 financial years, and how many of the prior 10 years you were non-resident. Plug them into the RNOR calculator—NR if under 182 days (with exceptions), RNOR if resident but pass the 9-of-10 or 729-day tests, ROR otherwise. Do not rely on what your bank calls you; FEMA labels and tax labels diverge.
India RNOR and US tax residency are separate. India may treat foreign income differently during RNOR, but US citizens and many US tax residents still have US filing and reporting duties. Calculate your India status first with the RNOR tool, then work through 401(k), IRA, brokerage, and RSU questions with a cross-border tax advisor.
FSI/TR/FA schedules depend on residential status, whether foreign income is taxable in India that year, and whether you are claiming foreign tax credit. RNOR often changes what foreign income is taxable—but the facts decide the schedule, not the label alone. Confirm with a CA before filing.
Per ITR instructions, Schedule FA is generally for residents with foreign assets/income. No need to report them during RNOR. Consult with your CA
Wanting to stay permanently does not by itself decide your income-tax status. India uses day-count tests for that financial year and your prior years. Gather exact India days, your non-resident history for the prior 10 years, and India days in the prior 7 years—then use the RNOR calculator to see NR, RNOR, or ROR.
RNOR can change how foreign income is taxed in India for 2-3 years, but Indian-source income, source-country tax, account reporting, and filing still need review. Run the RNOR calculator first, then list decisions to validate during the window: 401(k)/IRA, brokerage sales, foreign salary, and Schedule FA exposure.
Pick your return date only after you calculate Indian financial-year days, prior 7-year India days, and source-country tax residency. A few weeks can shift NR, RNOR, or ROR treatment—especially around March 31. Use the RNOR calculator with your exact travel history.
RNOR follows Income-tax Act day-count tests. You are RNOR if you were non-resident in 9 of the prior 10 years, or were in India 729 days or less in the prior 7 years. Many returnees get roughly 2–3 financial years, but your exact outcome depends on arrival date and past India days. Use our RNOR calculator with your real travel history.
RNOR is automatic in the sense that you either qualify or you do not, based on your years abroad. There is no separate application—you claim it correctly when you file your ITR. Use Desi Return's RNOR calculator with your travel history.
No. Your Indian income is fully taxable during RNOR. Only your foreign income generally gets the exemption during this window.
Usually 2 to 3 financial years, depending on how long you were abroad and when you return. There is no fixed number for everyone—calculate with your exact India day counts.
You cannot extend RNOR artificially, but the timing of your return affects how long it lasts. Returning later in a financial year can sometimes give you more of a window.
Yes—RNOR reduces what is taxed, but disclosure rules still apply once you are a resident. When in doubt, disclose and confirm with a CA.
Under FEMA you generally stop being an NRI when you return to settle—bank accounts must be re-designated. Under tax law you transition gradually through NRI → RNOR → full resident over 2–3 years.
Both can be correct. Your bank follows FEMA; your CA follows Income Tax Act day-count tests. They can differ in the same year. For a definitive read on your filing position, connect with our tax experts.
Indian tax on foreign income generally waits until you are a resident—and many returnees land in RNOR status for 2-3 years, when foreign-sourced income is typically exempt. Salary earned in India from day one is taxable immediately. Your landing date starts the financial-year day count, not a tax charge on every overseas dollar the day you arrive.
