You might think you’re an NRI just because you spend most of the year abroad—but your bank balance in India could tell a different story.
CA Nitin Kaushik warns that if your Indian income crosses ₹15 lakh, you could unexpectedly lose your NRI status, even if you haven’t stayed in India for long.
🚨 Are You Still an NRI? The ₹15 Lakh Rule Could Change Everything! 🚨
Being an NRI (Non-Resident Indian) isn’t just about how many days you spend abroad—it also depends on how much you earn in India. If your Indian income crosses ₹15 lakh, your tax status can change much… pic.twitter.com/yqkVuvKxIG
— CA Nitin Kaushik (@Finance_Bareek) April 2, 2025
“Your tax status can change much sooner than you think,” he wrote on X, highlighting a little-known rule that could alter your financial obligations overnight.
Many assume NRI status depends only on how many days they spend outside India. That’s a mistake. How much you earn in India also plays a critical role.
“Being an NRI isn’t just about how many days you stay abroad—it also depends on your Indian income. If it crosses ₹15 lakh, your tax status can change much sooner than expected,” Kaushik cautioned.
To illustrate, he shared an example:
Aman, an Indian citizen working overseas, spent 130 days in India last year. His earnings included:
✅ Salary credited abroad: ₹30 lakh (Not counted)
⚠️ Salary credited in an Indian bank: ₹5 lakh (Counted)
⚠️ Rental income from Indian property: ₹6 lakh (Counted)
⚠️ Interest from Indian fixed deposits: ₹2 lakh (Counted)
✅ Exempt HRA from Indian salary: ₹1 lakh (Not counted)
📉 Total taxable Indian income: ₹13 lakh → Aman remains an NRI.
But if his Indian income had touched ₹15 lakh or more, he would have been reclassified as an RNOR (Resident but Not Ordinarily Resident).
Kaushik stressed why this matters:
💡 If you become RNOR or Resident, India can tax your global income.
Additionally, he pointed out key exclusions:
❌ Deductions under 80C or 80D don’t help lower the ₹15 lakh threshold.
❌ Interest from NRE savings and FDs is tax-exempt and doesn’t count toward this limit.
🔹 What should you do?
✔️ Keep a close watch on all sources of Indian income.
✔️ Plan your visits carefully if your earnings are near the threshold.
✔️ Consult a tax expert to avoid costly surprises.
A small miscalculation could change everything. Don’t wait until it’s too late.
Original story on Business Today
Donald G. is the Principal Consultant at NRI Money+. He specialises in creating personalised financial plans for NRIs (Non-Resident Indians) and HNI (High Net-worth Individuals).
