Living in India: Two-day tests, a non-ordinary resident status, and a 0-30 scale (%)

In India, an individual is considered a resident for the tax year if they spend 182 days or more there, or if they spend 60 days or more there and have been present for 365 days or more in the preceding four years. A resident is taxed on their income from all sources. A non-ordinary resident is taxed only on a portion of their foreign income. The default tax rate ranges from 0 % to 30 %. This page does not cover social security, wealth tax, or visas.

Resident: 182 days, or 60 days and 365 days over four years

The official website of the Department of Income Tax publishes the Income Tax Act, 2025, as amended by the Finance Act, 2026. Section 1(3) makes it effective April 1, 2026, unless otherwise specified. Section 6(2) sets out two tests for an individual:

Only one of the two is needed. The "Non-Resident Individual for AY 2026-2027" page of the e-filing portal uses the same thresholds.

For Indian citizens and persons of Indian origin visiting India, the 60-day threshold is replaced by another: Article 6(5) stipulates 120 days when non-foreign source income exceeds fifteen lakh rupees, or INR 1,500,000. The administration's page on residency status cites 182 days for similar situations; this discrepancy between the two texts is not addressed here. These rules apply to Indian citizens and persons of Indian origin.

An Indian citizen not taxed elsewhere is presumed to be a resident

Article 6(7) classifies as residents, regardless of the day count, a person who meets three conditions: they are an Indian citizen, they are not subject to taxation in any other country or territory by reason of their domicile, residence, or a similar criterion, and their total non-foreign-source income exceeds INR 1,500,000 for the year. Article 6(8) rejects this presumption for those already considered residents by the day count test.

Non-ordinary resident: foreign income is excluded

Article 6(13) creates an intermediate category. A natural person is a non-ordinary resident if, in either case:

• she was a non-resident in India for nine of the previous ten years; ;
• She has spent a cumulative total of 729 days or less in India over the previous seven years.

Other cases target Indian citizens and persons of Indian origin whose non-foreign source income exceeds INR 1,500,000 and who have stayed between 120 and 181 days in the year, or Indian citizens presumed to be residents by Article 6(7).

Article 5 governs what is taxed. For a resident, total income includes all income, regardless of its source. For a non-ordinary resident, foreign income is taxable only if it is derived from a business controlled in India or from an occupation established in India. A non-resident is taxed only on income received in India or arising there.

Default scheme scale

The e-filing portal publishes, under the heading "AY 2026-27", a schedule for the Article 115BAC plan (page "return-applicable-1", note "Page Last Reviewed or Updated: 09-Jul-2026"). The page "Non-Resident Individual for AY 2026-2027" ("return-applicable-0") indicates that this plan is the default plan.

Three supplements are listed on these pages. A discount under Article 87A, of up to INR 60,000, applies if taxable income does not exceed INR 1,200,000. A health and education surcharge of 4 % is added to the tax and surcharge. The surcharge is zero up to 50 lakh of income (INR 5,000,000) and increases to 10 % between 50 lakh and 1 crore.

An older system remains in place, with a threshold of 250,000 INR for a taxpayer under 60 years of age, then 5 %, 20 % and 30 %. The scale applicable to periods governed by the 2025 law, in force on April 1, 2026, is not reproduced here: the heading "AY 2026-27" is insufficient to establish it, and the one for the year in question applies.

Capital gains on listed shares

The government's page on long-term capital gains ("tax-on-long-term-capital-gains") indicates a rate of 12.5% for listed shares (section 112A of the 1961 legislation cited on the page) on the portion of the gain exceeding INR 125,000. This rate applies if the Securities Transaction Tax (STT) is paid upon transfer and, for shares, also upon acquisition. The same page applies to disposals on or after July 23, 2024, for this rate of 12.5% and indicates 10% for securities transferred on or before July 22, 2024. The "non-resident-benefits-allowable" page includes 12.5 % on earnings exceeding INR 125,000 if the STT is paid upon the acquisition and disposal of listed shares. Neither of these pages displays an update date. Short-term gains, dividends, and real estate are not covered here.

Seventy days in India: a numerical example (fictional profile)

Situation. Marc, a fictional profile, spends 70 days in India each year. He has spent a cumulative total of 400 days there over the previous four years and 600 days over the previous seven years. His taxable income from Indian sources is assumed to be INR 2,000,000.

Issue. He wants to know if he is a resident, what income is taxed and at what amount.

Strategy. It applies the tests of article 6 and then the default scheme scale.

Result. He does not reach 182 days, but 70 days, and 400 cumulative days meet Article 6(2)(b): he is a resident. His 600 days over seven years are less than 729: he is a non-ordinary resident, and his foreign income is outside the scope unless it is derived from a business controlled in India or from a profession established in India. The tax schedule used is the one published under the heading "AY 2026-27"; the example applies it by assumption to a year governed by the 2025 law, which is not established here: the tax schedule for the year in question is verified. It yields INR 200,000 on INR 2,000,000. The cessation of 4 % adds INR 8,000, bringing the total to INR 208,000 and an average rate of 10.4 %. The discount under Article 87A does not apply, as the income exceeds INR 1,200,000, and the surcharge is zero. This calculation ignores deductions and credits.

What this page does not cover

This document does not cover dividends or domestic interest, wealth or inheritance tax in India, social security contributions, or visas. Withholding taxes applicable between France and India, the elimination of double taxation, and the most-favored-nation clause are described on our page about the France-India tax treaty. Local taxation is determined by consulting a professional based in India. Matters pertaining to France, including the departure tax return and the accounts to be declared, are addressed on our pages about tax residency and exit tax.

What changes depending on your situation

• Your number of days in India this year and over the previous four and seven years.
• Your nationality or Indian origin, which opens up special rules.
• The source of your income: Indian, or foreign.
• The system you choose, whether it's the default or the old one.
• The nature of your capital gains and the date of your disposals.

The rule depends on your situation. No results are guaranteed.