Rule change, India
India's new Income-tax Act: the residence days stay the same
India has a new income tax law since 1 April 2026. If you count days in India, the numbers you know still apply.
Published . This post explains a rule. It is not legal or tax advice.
What changed
The Income-tax Act, 2025 replaced the Income-tax Act, 1961 on 1 April 2026. The residence rules are now in section 6 of the 2025 Act. The 12 months from 1 April to 31 March are now called the tax year.
For a tax year that began before 1 April 2026, residence is still decided under the 1961 Act.
What did not change
The Income Tax Department confirms that the residence conditions in the new Act are the same as before. You are resident for a tax year if you meet one of two tests:
- You are in India for 182 days or more in the tax year.
- You are in India for 60 days or more in the tax year, and you were also in India for 365 days or more in the four years before.
For an Indian citizen or a person of Indian origin who lives abroad and visits India, the 60 days become 182 days. If that person's Indian income is above 15 lakh rupees (1,500,000 rupees), the 60 days become 120 days.
The parts people miss
- The 60-day test catches people who think only 182 days matter. If you lived in India in recent years, check the 365 days over the four years before.
- An Indian citizen with Indian income above 15 lakh rupees who is not liable to tax in any other country is treated as resident, whatever the number of days.
- A resident can be "not ordinarily resident", which gives a lighter result for foreign income. Only a resident who is ordinarily resident is taxed on income from the whole world.
What to do now
- Keep counting from 1 April to 31 March.
- Check both tests, not only the 182 days.
- When you read older guides, remember that "financial year" and "previous year" mean the same 12 months as the new "tax year".
The full rule, with worked examples, is on the page India Tax Residence.
Official sources
- Income Tax Department, non-resident individuals, help page
- Income Tax Department, frequently asked questions for non-residents
The rules in this post
- India Tax Residence: 181 days in each tax year from 1 April
Countr can count this for you.
It finds your past trips in your photos and counts the days for every rule you follow, on your phone.