RNOR (Resident but Not Ordinarily Resident) is a transitional Indian tax-residency classification -- available to someone who has been non-resident in India in 9 of the preceding 10 financial years, or in India for 729 days or fewer in the preceding 7 years -- under which foreign-source income generally stays outside India's tax net, unlike for a fully Resident individual.
RNOR sits between NRI and fully Resident status, and is most commonly relevant to an NRI moving back to
India permanently: for a limited window after their return (typically up to a couple of years, depending on
their specific residency history), their foreign-source income -- overseas salary already earned, foreign
investment income, foreign pension -- generally remains outside India's tax net, with the notable exception
of business income controlled from India. This makes the RNOR window valuable for timing large foreign-asset
sales, retirement-account withdrawals, or dividend receipts, since income realized during the RNOR period is
typically taxed more favorably than the same income realized after the individual becomes a fully Resident
taxpayer.
