What is the Difference Between ROR and RNOR?

Answer: Particulars Resident but not ordinarily Resident (RNOR) Resident and ordinary Resident (ROR) Global Income Not generally taxable in India unless the business is controlled by an indian or the income is received in an Indian bank account. Taxable in India Indian Income Taxable Taxable FA disclosure Reporting of foregin assets or income generated from them is not required in the ITR. Mandatory to report all the foregin assets while filing the ITR.

NRI Income Tax & Compliance

A Complete Guide On RNOR - Taxability Of Income & Key Rules

By Manish Prajapat |Last Updated: November 6, 2025

A Complete Guide On RNOR - Taxability Of Income & Key Rules

RNOR is a transitional tax status. Also known as an intermediate category, RNOR (Resident Non-Ordinary Resident) is especially relevant for expatriates and returning NRIs returning to India.

In a nutshell, this residential status acts as a tax bridge between being an NRI and becoming a tax resident of India.

Manish Prajapat(Tax Expert)

Mr Manish is a financial professional with over 10 years of experience in strategic financial planning, performance analysis, and compliance across different sectors, including Agriculture, Pharma, Manufacturing, & Oil and Gas. Mr Prajapati has a knack for managing financial accounts, driving business growth by optimizing cost efficiency and regulatory compliance. Additionally, he has expertise in developing financial models, preparing detailed cash flow statements, and closing the balance sheets.

Frequently Asked Questions

You can enjoy the resident but not ordinary resident statuses for up to 2-3 years, depending on your prior NRI period.

Your foreign income is exempt from income tax during your RNOR phases unless it's received or controlled from India. However, disclosures may be added to your Indian tax return for compliance purposes.

No, an RNOR that is resident but not ordinarily resident is not granted automatically. It entirely depends on your physical presence in India and the last NRI years. You must evaluate whether you can claim it accurately while filing your Income Tax Returns.

Yes, as an RNOR, you can easily maintain your NRE/FCNR deposits and remain tax-free until maturity.

Yes, if your income is taxable in indian, you must file an income tax return in Indian, selecting your residential status as "resident but not ordinarily resident".

A Complete Guide On RNOR - Taxability Of Income & Key Rules

Frequently Asked Questions

How Long Can I Enjoy the RNOR Status?

Do I Need to Declare Foreign Income While RNOR?

Is RNOR Automatically Granted?

Can I Maintain an Nre Account as a Resident but Not Ordinary Resident (RNOR)?

Should I File Indian Tax Returns as a Resident but Not Ordinarily Resident (RNOR)?

A Complete Guide On RNOR - Taxability Of Income & Key Rules

Frequently Asked Questions

How Long Can I Enjoy the RNOR Status?

Do I Need to Declare Foreign Income While RNOR?

Is RNOR Automatically Granted?

Can I Maintain an Nre Account as a Resident but Not Ordinary Resident (RNOR)?

Should I File Indian Tax Returns as a Resident but Not Ordinarily Resident (RNOR)?