Budget 2021: Expect 'wild card entry' on NRI residential status In case of no relaxation in residential status, NRIs would have to pay advance tax to avoid penal interest The non-resident Indians (NRIs) stuck in India during COVID-19 lockdown are a worried lot. As they take stock of their residential status for the financial year 2020-21, they expect a relief from the government on residency rules. In order to determine the tax liability in India for those settled abroad, first we need to check their residency status for a particular financial year. A non-resident Indian may qualify as an Indian resident for tax purposes if she meets one of the following two conditions - i) stay in India for a year is 182 days or more or ii) stay in India for the immediately four preceding years is 365 days or more and 60 days or more in the relevant financial year.