An NRI working in Singapore for 12 years on an Indian passport will not lose tax residency status in India despite visiting for three months to manage inherited assets. According to tax expert Harshal Bhuta from P. R. Bhuta CAs, the individual should continue qualifying as a non-resident for Indian tax purposes as their stay falls below the 120-day threshold. The taxability depends on the scope of total income, which is determined by residential status under the Income-Tax Act, 2025. As reported by Mint, an NRI who does not wish to be named, who has lived in Singapore for the past 12 years working for a consulting company, visited India after their mother's death to manage inherited assets and expects to spend around three months during this financial year.
Under the Income-Tax Act, 2025, an individual is considered a resident in India if present for 182 days or more during the relevant tax year, or satisfies the alternative 60-day test with 365 days stay in preceding four years. For Indian citizens or persons of Indian origin visiting India, the 60-day threshold is generally replaced by 182 days. However, where total income in India exceeds ₹15 lakh, this threshold reduces to 120 days. Since the individual's Indian income will fall in the 30% tax slab due to income from inherited assets exceeding ₹15 lakh, their planned stay of around three months should remain below the 120-day limit, according to Mint reports. For Indian citizens leaving India to take up employment abroad, the 182-day rule is particularly important - if such a person stays in India for 182 days or more during the relevant tax year, they can still be treated as a resident in India, as reported by The Times of India.
Since the individual's Indian income will fall in the 30% tax slab due to income from inherited assets exceeding ₹15 lakh, their stay in India is expected to remain below the 120-day threshold. As reported by Mint, NRIs are generally taxable only on income received or deemed to be received in India, or that accrues or arises in India. The salary from the Singapore employer should not become taxable merely because of the three-month visit. However, carrying out employment duties during the visit needs separate consideration, as salary relating to work performed in India may need examination for Indian tax purposes. According to The Times of India, salary earned for work done in India remains taxable in India, so if you worked with an Indian company from April to August and then left the country, the salary earned for those months does not become tax-free just because you later moved abroad. The situation can be different for the salary you earn after joining your overseas job, as foreign salary earned and received abroad would generally not be taxable in India merely because you are an Indian citizen.
Even if employment duties are performed in India, the salary may still be protected from Indian taxation under the India–Singapore Double Taxation Avoidance Agreement (DTAA), provided the individual continues to qualify as a tax resident of Singapore and obtains a Singapore Tax Residency Certificate (TRC). According to Mint reports, for this relief to apply, the person must continue to qualify as a Singapore tax resident and would need a Singapore Tax Residency Certificate. Form 41 must also be filed to claim the applicable benefit under the agreement, subject to satisfaction of treaty conditions. The tax agreement between India and Singapore could provide relief, but the answer depends mainly on their residential status under the Income-Tax Act, 2025. As reported by The Times of India, if you become a non-resident and perform your employment duties outside India, foreign salary earned and received abroad would generally not be taxable in India merely because you are an Indian citizen, unless you are a Resident and Ordinarily Resident, in which case overseas salary, interest or investment income may also have to be considered while filing the Indian tax return.
If you continue to hold bank deposits, shares, mutual funds, or a house in India after moving abroad, income earned from these assets may still be taxable in India. For example, rent from a house located in India remains Indian income, and capital gains from certain Indian investments may also be taxable here when those investments are sold. The way these investments are operated may change too - once a person becomes a non-resident, bank and investment accounts may need to be updated according to the rules applicable to NRIs. According to The Times of India, if you continue to hold Indian investments after moving abroad, income earned from these assets may still be taxable in India, and the way these investments are operated may change too, requiring updates according to NRI rules.
