How to Calculate 182 Days for NRI?

My friend had been living and working in a foreign country for several years. A few weeks ago, he called me telling me that he wanted to understand his tax residency status in India and whether he qualified as a non-resident Indian (NRI). So, I told him how to calculate 182 days for NRI.

How to calculate period 182 days for NRI?

The number of days a person spends in India during a fiscal year is used to calculate the 182-day rule for non-resident Indians (NRIs). This information is used to assess the person's tax residency status. Here's how you can calculate the NRI status 182 days:

• Identify the financial year:

  Choose the precise financial year for which you wish to estimate the NRI status 182 days. In India, the financial year ranges from April 1 to March 31.

• Estimate your physical presence in India:

  Determine how many days you spent physically being present in India during the financial year in question. This covers both the day of arrival and the day of departure. Any part of a day lived in India is regarded as a complete day for the purposes of this calculation.

• Keep in mind the exceptions:

  The 182-day rule is subject to some exceptions. The 182-day limit is lowered to 60 days instead of 182 days if you are an Indian citizen or a person of Indian origin (PIO) who has travelled outside of India because of employment or as part of the crew on an Indian ship.

• Determine your average stay:

  Calculating your average stay in India over the last four financial years is another way to assess your tax residency status, if you have been an NRI for the previous four fiscal years. You will be regarded as an NRI if the average is less than 182 days.

• Estimate your tax residency:

  You shall be regarded as a resident of India for tax purposes if,

• your physical presence in India exceeds 182 days during the fiscal year, or 

• if your average stay over the previous four years exceeds 182 days. 

If not, You will be regarded as an NRI.

I hope this explains to you how to calculate 182 days for NRI.

The 182 days tax rule in India involves understanding the criteria outlined by the Income Tax Act of India. According to Indian tax laws, an individual is considered a Non-Resident if they meet one of the following conditions:

1. They have been in India for less than 182 days during the financial year (April 1st to March 31st).

2. They have been in India for less than 60 days during the financial year and have been in India for less than 365 days during the four preceding financial years.

How to Calculate Number of Days Stay in India for NRI?

Here's how to calculate the 182 days for NRI status. 

• Count the number of days you have been physically present in India during the financial year. Any day during which you are present in India at midnight is considered a day of stay in India for tax purposes.

Certain days of stay in India may not be counted towards the NRI 182 days rule threshold. For example:

• If you are an Indian citizen leaving India for employment or as a crew member of an Indian ship, the 60-day rule applies instead of the 182-day rule.

• Additionally, days spent in India for medical treatment, or due to unforeseen circumstances such as natural calamities, may be excluded from the calculation.

Consider your stay in India during the previous four financial years. If you have been in India for less than 365 days in each of these four years, the 182-day rule applies. If your stay exceeds 365 days in any of these years, you may be considered a Resident.

• Total the number of days of physical presence in India during the current financial year and assess whether it meets the criteria for NRI status based on the 182-day rule or the 60-day rule with reference to the preceding financial years.

• Keep accurate records of your travel dates, including entry and exit dates from India, as well as any supporting documentation such as passport stamps, travel tickets, and visa records.

If you are unsure about your residency status or need assistance with calculating your stay in India for tax purposes, consider consulting with a qualified tax advisor or chartered accountant who can provide personalized guidance based on your specific circumstances and the latest tax laws.

This is all about the 182 days tax rule in India.

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