Who files Residency: 182/60+365 day tests?

  • 15+Years of cross-border experience
  • 18,000+Clients served
  • 5.0Google rating
  • 4Global offices — India, USA, Canada & UAE
  • Google rating 5.0 out of 5
  • 24-hour helpline: +1 (416) 619-0068
  • 18,000+ clients served
Answer

Anyone arriving in or leaving India mid-year, and NRIs visiting India for extended periods. The obligation is decided by facts rather than by tax owing, which is why a nil position does not remove it.

The rule on who files

Anyone arriving in or leaving India mid-year, and NRIs visiting India for extended periods.

Two of the firm’s advisers at the glass desk in the Delhi office

The exception that catches people

Two tests, either of which makes a person resident, plus special rules for Indians leaving for employment and for visits by persons of Indian origin. A long visit home can change status for a whole year, which is why the count is kept contemporaneously.

Who files Residency: 182/60+365 day tests?
ItemAmount
Cost of the propertyC$205,000
Value on the departure dayC$393,600
Accrued gain treated as realisedC$188,600
Amount assumed to enter incomeC$94,300
Tax at an assumed 32%C$30,176

C$30,176 becomes payable in a year with no sale and no cash. That is what makes the departure date a planning variable: losses realised before it, an election to defer payment against security, and defensible valuations for anything private all change this number.

An illustration, not a client file. The sums are chosen for legibility and the thresholds are stated for the example alone — nothing reaches a filing until it has been confirmed at source for your own year.

Where to go from here

The full treatment — who it binds, the deadline, the penalty and the fixed fee — is on Residency: 182/60+365 day tests in India. Whatever you have is enough to start the conversation, including nothing but the dates.

Checked and signed off for the 2025 and 2026 filing seasons by Udit Gupta, Cross-Border Tax Expert, Legal Quotient Consultants. Written as general guidance, not as a recommendation for your situation. Talk it through with us before acting on it.

Where do I have to file US taxes comes into this file

Most readers of this page are looking for do I have to file US taxes. What follows sets out how it works for residency: 182/60+365 day tests: who is caught by it, what has to be filed, and what the work costs, agreed before it begins.

Cross-border situations we are engaged for

Case study 1

Arrival year day count rebuilt from stamps and boarding passes

A client who had moved to India partway through a year had filed on the assumption that only the months after arrival mattered. The count itself had never been done. We rebuilt it from immigration stamps, boarding passes and the airline's own record of the flights, then applied both tests to the completed year and to the preceding years the second test reaches back into. The engagement produced a dated day count schedule, a written determination of status for the year, and a filing position that followed the determination rather than the assumption it replaced.

Read how this one runs
Case study 2

A departure year that turned on the employment rule rather than the count

A client had left India to take up a post abroad and had been told by friends that a certain number of days would settle the matter. The days alone did not settle it, because the rule reached by a departure for employment is not the ordinary one. The work consisted of assembling the contract, the start date, the work permit and the travel record, and testing whether the departure answered the description in the rule. The outcome was a determination for the departure year supported by the employment documents, and a note of what would have changed the answer.

Read how this one runs
Case study 3

An extended family visit that moved a whole year into charge

An NRI extended a planned visit home to care for a parent and stayed considerably longer than intended. Because status attaches to the whole Indian year, the extension put a full year of foreign income and foreign assets into a different treatment. The work was done before the filing date rather than after it: a completed count, a determination of status, and then a return prepared on the basis that the year was resident. The engagement produced a filed position consistent with the facts, and a forward calendar showing the point in the following year at which the same thing would happen again.

Read how this one runs
Case study 4

The second test caught a year the client believed was safe

A frequent traveller had kept each year's stay comfortably short and had never looked further back than the year in front of him. The second test pairs a shorter stay with presence across preceding years, and on the accumulated history it was met. The work consisted of counting several consecutive years rather than one, identifying the year in which the combination first bit, and setting out the consequence for each subsequent year. The engagement produced a multi year presence schedule and a determination for each year in it, replacing an assumption that had never been tested against the second test at all.

Read how this one runs
Case study 5

A running day log built for a consultant flying in every few weeks

A consultant with work on both sides had no reliable record of his own movements and was reaching each year end without knowing where he stood. The engagement was preventative rather than corrective. We built a log kept as the trips happened, reconciled it quarterly against boarding passes and stamps, and produced a projection of the date on which each of the two tests would be met if the travel pattern continued. What it produced was a running count the client could read at any point in the year, and a note of the trips that would tip it.

Read how this one runs
Case study 6

One household and two different determinations once each partner was counted

A couple returning to India together assumed a single determination would cover both of them. Their travel histories were not the same: one had been out of India considerably longer than the other, and their trips home over the preceding years differed in both number and length. The work was two separate counts and two separate applications of the tests. What the work produced was a determination for each of them, which did not agree, and a short written explanation of why identical arrival dates had produced different statuses for the same year.

Read how this one runs
Case study 7

A Student or Researcher Covered by a Treaty Article

Several treaties carry a dedicated article for students, trainees and visiting researchers that displaces the ordinary employment rules. Whether it applies turns on the purpose of the stay and the source of the funds, both of which are evidenced rather than asserted.

Read how this one runs
Case study 8

Residency Changed Mid-Year and Both Returns Assumed a Full One

A move part-way through a year produces two part-year positions, not two full ones. The engagement establishes the date residence actually changed, allocates income either side of it, and amends whichever return was filed on the wrong footing.

Read how this one runs

All case studies — every published engagement in one place.

Core International & Cross-Border Tax Services

International Tax Planning & Advisory

Strategy and compliance for income, assets and families spread across borders.

One coordinating team: filings on every side of the border are sequenced so treaty relief and foreign tax credits are claimed once — and in the right country.

U.S. & Cross-Border Tax Returns

Dual filers: U.S. citizens in Canada and Canadians with U.S. income run two parallel systems — we prepare both, in the right order, every year.

Expat & Emigration Tax

The move year is its own project: the elections and valuations filed that year decide the next decade of both countries’ returns.

Non-Resident Canadian Tax

Default withholding is 25% of gross: elective returns routinely turn over-withheld rent and pensions into refunds.

Transfer Pricing & BEPS

Documentation prepared with the return is the cheapest insurance in international tax; reconstructing it during an audit is the most expensive.

Cross-Border Estates & Trusts

Wills drafted for one country routinely misfire in the other — deemed disposition here, estate tax there, credits in between.

Cross-Border Corporate Tax

Expansion raises the same four questions every time — entity, PE, repatriation, payroll. We answer them before the tax authorities do.

India Tax for NRIs & Returning Residents

The deduction is taken on the sale price, not the gain — which is why an NRI property sale strands cash unless the certificate is applied for before closing.

Canadian Tax with a Foreign Element

Residency is decided on facts, not on a form — and the year you arrive or leave is the one where the largest amounts turn on the smallest details.

UAE Tax for Expats & Their Home Country

A zero-tax country is only half the answer — the question that decides the bill is whether the country you came from still treats you as resident.

Industries & Client Types We Serve Worldwide

Global E-commerce & Marketplaces
Technology & SaaS
Professional Services Firms
Cross-Border Real Estate
Importers, Exporters & Manufacturers
Athletes, Artists & Entertainers
Remote Workers & Digital Nomads
Investment Funds & Holding Companies

Global E-commerce & Marketplaces

  • Foreign VAT / GST / sales tax registrations
  • Marketplace withholding reviews
  • Inventory nexus & PE analysis
  • Multi-currency books reconciled
Explore E-commerce & Marketplaces

Technology & SaaS

  • Cross-border revenue sourcing & withholding
  • IP structuring with real substance
  • Equity for cross-border teams
  • U.S. expansion: entity & PE setup
Explore Technology & SaaS

Importers, Exporters & Manufacturers

  • Transfer pricing documentation (s.247)
  • Customs value vs transfer price
  • Foreign affiliate reporting (T1134)
  • Country-by-country reporting
Explore Trade & Manufacturing

Athletes, Artists & Entertainers

  • Reg 105 & U.S. CWA agreements
  • Multi-state & country calendars
  • Touring income allocation
  • Royalty & image-rights withholding
Explore Athletes & Entertainers

Remote Workers & Digital Nomads

  • Residency analysis before moving
  • Employer payroll exposure
  • Totalization & social security
  • Foreign tax credits
Explore Remote Workers

Investment Funds & Holding Companies

Holding structures live or die on treaty access, beneficial ownership and substance — the MLI's principal-purpose test now sits over every arrangement.

A holding structure is only as good as its reporting. Foreign affiliates, accrued passive income and distributions each carry their own return, and the penalties on those attach to the form rather than to any tax being owed — so a structure that saves tax can still cost money if the information returns are late.

  • Treaty access & PPT reviews
  • FAPI & surplus computations
  • Withholding-efficient routing
  • Governance & substance
Explore Funds & Holdcos

Residency: 182/60+365 day tests: further questions

How many days in India make me a tax resident?

India applies two tests, and meeting either one makes a person resident for the whole Indian year. The first is a count of days present in the year itself. The second pairs a shorter stay in the year with presence in India across the preceding years, which is why somebody comfortable about the current year's travel can still be caught by it. Two further sets of rules sit on top of those: one for Indians leaving India for employment, one for visits by people of Indian origin. So the answer for any given year comes out of a count rather than a rule of thumb, and the count has to reach back into earlier years as well as the current one.

Does a long visit home change my Indian residency for the whole year?

There is no part year status under these tests. Residency is decided for the Indian year as a whole, so a stay that tips either test changes the treatment of the entire year, including the months before arrival and after departure. That is the trap in an extended family visit. A trip taken for reasons that have nothing to do with tax, and then extended by a few weeks because of an illness at home, can move a whole year of foreign income into charge. It is also the reason the day count is kept as the travel happens rather than reconstructed at the year end, by which point the decision has been made for you.

I left India for a job abroad mid-year, am I still resident?

Somebody leaving India to take up employment abroad is dealt with under a rule of its own rather than the ordinary count, so the departure year often turns on the character of the departure and the evidence for the employment, not only on the number of days. In practice that means the position has to be supportable from documents: an employment contract, a start date, the work permit or visa relied on, and a departure date consistent with all of them. Where the departure was to look for work rather than to begin it, the ordinary tests apply instead, and the year frequently comes out differently from what the traveller assumed.

Are the residency rules different for NRIs visiting family in India?

Visits to India by people of Indian origin are dealt with under rules of their own, which is why a visiting NRI and a foreign national on an identical itinerary can finish the year in different positions. Those rules bear on the second test, the one that pairs a shorter stay in the year with presence in earlier years, so the length of past visits matters as much as this year's. The first question to answer is therefore not how long am I here, but how long have I been here across the recent years, because that is what decides which of the two tests is capable of biting.

What records prove how many days I spent in India?

Immigration stamps in the passport are the usual starting point, supported by boarding passes, airline records and the tickets themselves. The weakness of stamps alone is that they are sometimes missing, faint or on a passport that has since been replaced, and a count with a gap in it is not a count. A contemporaneous log solves this easily: arrival and departure dates entered as each trip happens, with the travel document reference against each entry. Where the record has to be rebuilt after the event, expect to use several sources together and to note in writing which days rest on inference rather than on a document.

Can I be resident in both India and another country in one year?

Yes. Each country decides residency under its own law, so one year of travel can satisfy two countries' tests at the same time. Where that happens, a treaty between the two countries may decide which of them treats the person as resident for treaty purposes, using tie breaker criteria rather than a day count. That does not by itself switch off the other country's domestic obligations, and it is not automatic: the position has to be worked out, filed consistently in both places and kept supportable. The day count is still the starting point, because a treaty argument built on a disputed count will not survive examination in either country.

I work remotely from another country for a company back home — who taxes me?

Usually the country you are physically in, because employment income is generally sourced where the work is done, with your residence country taxing it as well if you are resident there and giving credit. Three things follow: your employer may acquire withholding and social security obligations where you sit, a treaty tie-breaker may be needed if both countries call you resident, and a short trip that becomes a long stay can cross a residence threshold nobody was watching. See remote workers and digital nomads.

How is tax residency decided?

By facts, not by citizenship or the address on your post. Canada weighs your ties — a home available to you, spouse, dependants, then secondary ties like accounts and licences. The US adds a mechanical day-count test alongside its green-card test. India counts days present under its own thresholds. Where two countries both conclude you are resident, the treaty tie-breaker decides one residence: permanent home, then centre of vital interests, then habitual abode, then nationality. See tax residency.

Our practitioners are alumni of leading accounting and tax institutions

Where our partners studied — CPA Canada (In-Depth Tax Program), AICPA, the Institute of Chartered Accountants of India and the Malaysian Institute of Accountants.

Request a Quote +1 (416) 619-0068