Your Indian tax status after moving to the UAE: NRI, RNOR or resident?

The new Income-tax Act from April 2026

India's Income-tax Act 2025 replaced the 1961 Act for tax years starting on or after 1 April 2026. The residence tests are the same, but the section and form numbers have changed. For example, Form 10F is now Form 41. This guide gives the 2025 Act's references, with the 1961 Act's where they help. [2][3][11]

The day-count tests

You are resident in India for a tax year if either applies: [1][2]

• you are in India for 182 days or more in the year, or
• you are in India for 60 days or more in the year and 365 days or more over the previous 4 years

Two exceptions replace the 60-day test: [1][2]

• Leaving India for work. An Indian citizen who leaves India in the year for a job abroad is resident only at 182 days or more. (2025 Act s.6(3).)
• Visiting India. An Indian citizen or person of Indian origin living abroad is also resident only at 182 days. The exception: if their Indian income exceeds ₹15 lakh, the 60-day test returns as 120 days. They are then resident with 120 days in the year plus 365 days in the previous four. (s.6(4), 6(5).)

"Indian income" here means total income other than income from foreign sources. [1]

Deemed residence: resident with no days in India

An Indian citizen is treated as resident, however few days they spend in India, if all of these apply: (s.6(7) and 6(8), formerly s.6(1A)) [1][2]

• their Indian income exceeds ₹15 lakh
• they are not liable to tax in any other country by reason of residence, domicile or a similar test
• they are not already resident under the day tests

The UAE does not levy income tax on individuals. [12] India's Act defines "liable to tax" as having an income-tax liability under the other country's law. [5] So a UAE resident with Indian income above ₹15 lakh may fall within this rule. We have found no official ruling on whether a UAE tax residency certificate takes you outside it. Take advice on your own position.

In practice, the rule's effect is limited. A deemed resident is automatically RNOR (see below). Their UAE salary and other foreign income are then taxed in India only if received in India, or if it comes from a business controlled in India or a profession set up in India. Indian income is taxed either way. [1][6][7]

RNOR: resident but not ordinarily resident

You are RNOR in a year if you are resident but any of these applies: (s.6(13), formerly s.6(6)) [1][2]

• you were non-resident in 9 of the previous 10 tax years
• you spent 729 days or fewer in India over the previous 7 tax years
• you are resident only through the 120-day visitor rule
• you are resident only through deemed residence

An RNOR is taxed on income received or arising in India. Foreign income is taxed only if it is received in India, or comes from a business controlled in India or a profession set up in India. [7] Because of the 9-of-10 test, someone who returns to India after ten or more years as a non-resident is RNOR for at least their first 2 tax years back. [1]

What each status is taxed on

Source: 2025 Act s.5 and s.9. [7][11]

Reporting foreign assets when you're resident

A resident and ordinarily resident individual who holds any asset outside India must file an Indian tax return, whatever their income. [11] Every foreign asset is reported in Schedule FA of that return, including: [8]

• bank accounts
• shares
• property
• insurance policies with a cash value
• interests in foreign companies and trusts

Non-residents and RNORs don't complete Schedule FA. The duty returns when you become ordinarily resident again. A Dubai flat, UAE bank accounts and UAE company shares must then be listed. [8] The Income Tax Department receives information on foreign accounts under international exchange agreements. Failing to report foreign assets can lead to penalties and prosecution under the Black Money Act 2015. [9]

The India–UAE tax treaty

Under the treaty, an individual is resident in the UAE if present there for at least 183 days in a calendar year. If both countries could treat you as resident, a tie-breaker looks at: [10]

1. where you have a permanent home
2. where your personal and economic ties are closer
3. where you usually live
4. your nationality

To claim a treaty rate in India, such as the 12.5% cap on Indian interest, you need a tax residency certificate from the UAE and India's Form 41. [4][10][11]

How Marlborough Gulf helps

What we do:

• We plan the UAE side of your move: residency, a company where you need one, and the documents behind your UAE tax residency certificate.
• We coordinate it with your Indian position.

What others do: An Indian chartered accountant advises on your Indian residence status and returns. You appoint them directly.

Questions people ask

How many days can an NRI stay in India?

Usually up to 181 days in a tax year. If your Indian income exceeds ₹15 lakh and you've spent 365 days in India over the previous 4 years, the limit is 119 days. Deemed residence can apply whatever the number of days. [1][2]

What is RNOR status?

Resident but not ordinarily resident: a halfway status where you are resident, but foreign income is taxed only if it is received in India or comes from a business controlled in India or a profession set up in India. [1][7]

Can I be an Indian tax resident without visiting India?

Yes, if you're an Indian citizen with Indian income above ₹15 lakh who isn't liable to tax elsewhere. This is deemed residence. [1]

Is my UAE salary taxed in India?

Not if you're non-resident or RNOR, the work is done outside India and the salary is paid to you outside India. A non-resident is taxed on income received or arising in India. [7][11]

This guide is general information about Indian tax rules, not advice on your position. Indian residents and those with Indian income should take advice from a qualified Indian chartered accountant.

Related guides

• NRE and NRO accounts explained
• Moving money from India: FEMA and the LRS limit
• Relocating to the Gulf

Sources

1. Income-tax Act 2025, section 6 (Residence in India), Income Tax Department, opened 29 Oct 2026. https://www.incometaxindia.gov.in/w/section-6-1
2. Income Tax Department, Non Resident FAQs, Q1–Q5 and Q9, updated 28 Oct 2026. https://www.incometax.gov.in/iec/foportal/help/all-topics/e-filing-services/non%20resident%20-faq
3. Income Tax Department, FAQs and Guidance Notes on Forms as per Income-tax Rules, 2026 (table of new and old form numbers: Form 41 was Form 10F), updated 26 Oct 2026. https://www.incometaxindia.gov.in/w/faqs-on-forms-as-per-income-tax-rules-2026-1
4. Income-tax Rules 2026, Rule 75 (Forms 41, 42, 43), Income Tax Department, updated 26 Oct 2026. https://www.incometaxindia.gov.in/w/rule-75-3
5. Income-tax Act 2025, section 2(66) ("liable to tax"), Income Tax Department, opened 29 Oct 2026. https://www.incometaxindia.gov.in/w/section-2-1
6. Consulate General of India, Dubai, "Clarification regarding the provision in 2020 Budget on deemed tax residency", 3 Feb 2020. https://www.cgidubai.gov.in/section/press-releases/clarification-regarding-the-provision-in-2020-budget-on-deemed-tax-residency-in-india/
7. Income-tax Act 2025, section 5 (Scope of total income), Income Tax Department, opened 29 Oct 2026. https://www.incometaxindia.gov.in/w/section-5-1
8. Income Tax Department, "Step-by-Step Guide to Fill FSI, TR, and FA Schedule in ITR", March 2026. https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-03/Step%20by%20Step%20Guide%20FA%20FSI.pdf
9. Income Tax Department, "Enhancing Tax Transparency on Foreign Assets & Income: Understanding CRS & FATCA", Nov 2024. https://www.incometax.gov.in/iec/foportal/sites/default/files/2024-11/Enhancing%20Tax%20Transparency%20on%20Foreign%20Assets%20and%20Income.pdf
10. India–UAE tax treaty, synthesised text with the MLI, Articles 4 and 11, Income Tax Department. https://www.incometaxindia.gov.in/w/uae-synthesised-text-1
11. The Income-tax Act, 2025 (No. 30 of 2025), sections 1(3), 9(2), 9(3), 9(5), 159(8), 263(1)(a)(ix) and (b), and 536, Gazette of India, 21 Aug 2025. https://egazette.gov.in/WriteReadData/2025/265620.pdf
12. UAE Government portal, Taxation, opened 29 Oct 2026. https://u.ae/en/information-and-services/finance-and-investment/taxation