NRI (Non-Resident Indian)
A residential status under Indian tax law, determined by days physically present in India during the year, that changes which income is taxable in India and which isn't.
NRI status, for tax purposes, is decided by counting the number of days a person is physically present in India during a financial year, and in some cases the preceding years too, not by citizenship, visa status, or where someone considers 'home.' The specific day-count thresholds and exceptions are detailed enough that they're worth checking against the current year's rules rather than assumed from memory.
Residential status directly changes what income is taxable in India: a resident is generally taxed on worldwide income, while an NRI is typically taxed only on income earned or received in India, such as Indian rental income, capital gains on Indian assets, or Indian interest income. Someone can be an NRI for one financial year and a resident the next simply based on how much time they spent in India that year, so this status is reassessed annually, not fixed permanently.
This glossary entry is for general informational purposes only and does not constitute professional tax, legal, or financial advice. Rules and rates change, so consult a qualified Chartered Accountant for advice specific to your situation.