A returning NRI has raised concerns about RNOR rules after moving back to India from the US. Many NRIs expect a simple timeline, but this experience suggests otherwise. The case highlights confusion around tax status after relocation.
The individual claimed he moved to Mumbai in July 2024 after spending 34 years in New York. While researching Resident but Not Ordinary Resident status, he found no fixed two or three year rule. This challenges common assumptions.
According to a Reddit post, India’s tax law follows two tests under Section 6(6). A person can qualify as RNOR if they were non resident in 9 of the last 10 years. Another condition is spending 729 days or fewer in India over seven years.
The user explained that these conditions create different timelines for each individual. Some returning Indians may remain RNOR for nearly three years. Others may lose the status earlier depending on travel history and stay duration in India.
He claimed to have spent only about 135 days in India over seven years before returning. Based on this, he expects to remain under RNOR status until March 2027. This example shows how timelines can vary significantly.
The financial impact of this status is important for NRIs. Once a person becomes ROR, global income may be taxed in India. This includes US dividends, stock gains, retirement accounts, and rental earnings, which increases tax complexity.
The discussion is gaining traction among Indians in the US. Concerns around layoffs, Green Card delays, and H-1B uncertainty are already high. This tax issue adds another layer of worry for those planning a return.
