How long does RNOR last?

Typically two financial years, sometimes three, depending on how many of the prior ten years you were non-resident. We calculate it precisely from your travel history.

Does RNOR cover Indian income too?

No. Indian-source income is taxed normally throughout. RNOR only shelters foreign-source income (other than business controlled from India) from Indian tax.

Not directly. But you can extend the benefit by timing your return date — landing in April instead of March can add a full financial year to the window.

April 2026 RNOR deadline · Act before you land→

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Practice · RNOR Planning

The window that closes quietly.

Most returning NRIs discover RNOR after it has expired. Plan it before you board — two to three tax years to realise foreign gains, convert accounts and reset cost bases without Indian tax on the historic build-up.

Resident but Not Ordinarily Resident (RNOR) is a two-to-three-year transitional status returning NRIs hold immediately after Indian tax residency begins. Foreign-source income — other than business controlled from India — stays outside Indian tax. Use the window to realise foreign capital gains, draw 401(k)/SIPP, vest RSUs, and reset cost bases before full residency hits.

Last reviewed: June 2026 · Updated for AY 2026-27

The RNOR plan

Four moves, in order.

Map the window

Count physical-presence days for the prior ten years to determine exactly how long RNOR lasts — typically two to three financial years after return.

Restructure income

Foreign-source income (other than business controlled from India) stays outside Indian tax during RNOR. Time bonuses, RSU vesting and distributions accordingly.

Reset cost bases

Sell and re-buy foreign assets to step up cost basis at home-country rates, before Indian capital-gains rules apply on the full historic gain.

Convert accounts

Redesignate NRE/FCNR to resident or RFC accounts on the right date. Premature conversion forfeits interest exemptions; late conversion is a FEMA breach.

Common mistake

Selling foreign assets after landing.

A US brokerage sold the day after you become ordinarily resident triggers Indian capital-gains tax on twenty years of appreciation. The same sale a week earlier — inside the RNOR window — is taxed only at home. The calendar matters more than the strategy.

See the full return playbook→

Common questions

Answered, candidly.

How long does RNOR last?: Typically two financial years, sometimes three, depending on how many of the prior ten years you were non-resident. We calculate it precisely from your travel history.
Does RNOR cover Indian income too?: No. Indian-source income is taxed normally throughout. RNOR only shelters foreign-source income (other than business controlled from India) from Indian tax.
Can I extend RNOR?: Not directly. But you can extend the benefit by timing your return date — landing in April instead of March can add a full financial year to the window.

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