How Residency Status Affects Your Tax Liability in India | Adopremium
India attracts thousands of global professionals, entrepreneurs, and digital nomads each year. Whether you’re relocating for work, managing cross-border income, or staying long-term, understanding how your residency status affects your tax liability is crucial. For expats, taxation in India can be complex — with rules tied to the number of days spent in the country, type of income, and source of earnings. That’s why consulting an experienced expat tax consultant or expat tax advisor can help you avoid costly errors and ensure full compliance. Let’s break down how residency status determines what taxes you pay in India — and how you can plan smarter. Understanding Residency Status Under Indian Tax Law In India, your tax liability depends primarily on your residency status for a given financial year, not your nationality or visa type. The Indian Income Tax Act (Section 6) classifies individuals into three categories: Resident and Ordinarily Resident (ROR) Resident but Not O...