Section 2(v) of the Foreign Exchange Management Act, 1999 begins with a count: a person resident in India is someone who resided in India for more than 182 days during the preceding financial year. Then it takes most of that back. A person who has gone abroad for employment, for business or vocation, or in circumstances showing an intention to stay away for an uncertain period is not resident — however many days they spent in India last year.
The mirror rule applies on the way home. Someone who comes to India for employment, business or an uncertain stay becomes a person resident in India from the day of arrival. Someone who comes only for a holiday, a wedding or a medical visit does not — which is why an NRI on a two-month trip to India keeps the NRE account open and working.
"NRI" itself is defined in the regulations rather than the Act: a person resident outside India who is a citizen of India. An OCI cardholder is a person of Indian origin, treated alongside NRIs for most banking and property purposes but not identical to them.
Two cases where the test bites hardest. The week you go, because FEMA turns then and not after a day count — and a seafarer's year, where the days are not spent in any country at all.
Becoming an NRI: the first steps
Residential status for seafarers
- Purpose and intention outrank the day count.
- Status can change the day you board a flight, not at the year end.
- Students going abroad to study are generally treated as non-resident.
Source: the test is in section 2(v) of FEMA, 1999 — read with the Reserve Bank of India's FAQ Accounts in India by Non-residents, as on 16 January 2025. This is your exchange-control status and nothing else: the income-tax residence test is a separate one, in the Income-tax Act, and the two can disagree about you on the same day. Checked 20 September 2026.