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New Emigrant

Filing your tax return for the year you left India

You moved abroad part-way through the year and you can't tell whether you file as a resident, an NRI, or somehow both.

You left India during the financial year to take up work abroad, and now the return for that year is genuinely confusing. You were a resident for the first part of the year and an NRI after, so it feels like the return should be split — global income for the months you were here, only Indian income for the months you were gone. India doesn't quite work that way, and getting the framing wrong is how people either over-report foreign salary that India never taxed, or under-report income for a year that still counted as resident. The return for the move year sits on one question — what your residential status was for that whole year — and everything else follows from it.
Last reviewed: 11 June 20269 min readReviewed by Preetesh Maloo, CA

The short answer

India does not formally split the year into resident and non-resident halves. Your residential status is decided for the whole financial year by a day-count (Section 6), and that single status governs the entire year's return. For someone leaving India for employment abroad, the test is 182 days — if you were in India for 182 days or more before leaving, you're a resident for that whole year and your global income for the year is taxable; leave earlier and you're a non-resident for the year, taxed only on your Indian income. Either way the return is filed on ITR-2, the form for individuals with salary, capital gains and foreign income but no Indian business.

References on this page

  • Section 6(1) — residential status for the whole financial year, decided by physical-presence day-count
  • Explanation 1(a) to Section 6(1) — Indian citizen leaving for employment abroad: the 182-day test applies in the departure year
  • Resident year: worldwide income taxable; non-resident year: only Indian income taxable
  • ITR-2 — return form for individuals with salary, capital gains and foreign income, no business income

Why there's no true split-year return in India

The instinct in the move year is to imagine two returns stitched together — resident rules up to your departure date, non-resident rules after. India doesn't do that. Your residential status is determined once, for the entire financial year, on a day-count (Section 6), and that one status decides how the whole year is taxed. There is no clean line drawn at your boarding pass.

What that means in practice is that the move year falls into one box or the other:

Status for the move yearWhat's taxable for the whole year
ResidentWorldwide income — Indian plus foreign
Non-residentOnly Indian income

So the loose phrase "global income for the resident part, Indian income after" describes the feel of it but not the mechanism. If the year counts as resident, your foreign salary earned after you left is part of a resident year's worldwide income and comes into the Indian return — though relief for tax you paid abroad on it is usually available so it isn't taxed twice. If the year counts as non-resident, none of that foreign income is Indian-taxable. The whole return turns on which box you're in, which is why the day-count is settled first.

The day-count that decides the move year

For an Indian citizen leaving the country for the purpose of employment abroad, the residential-status test in the departure year is the 182-day rule (Explanation 1(a) to Section 6(1)). The shorter 60-day-plus-365-day test that catches other people does not apply to you in the year you leave for a job — only the 182-day count matters.

That tends to make the timing of your departure the whole story. Leave in the second half of the year, after you've already been in India for 182 days or more, and you're a resident for that entire financial year — worldwide income, including post-move foreign salary, comes into the return. Leave in the first half, before you cross 182 days in India, and you're a non-resident for the whole year, taxed only on your Indian income.

The count is on actual physical days, so partial days, work trips and the exact departure date all feed in. This is the single calculation the return hangs on, and it is worth confirming precisely rather than estimating — a few days either side of the 182 line changes whether a whole year of foreign salary is inside or outside the Indian net.

A worked example: a resident move year for a January leaver

Karthik leaves Chennai in late January 2027 — within the 2026-27 financial year — to start a job in Dubai. He was in India from April right up to his departure, so his day-count for 2026-27 is comfortably over 182 days. Under the employment-abroad rule that applies the 182-day test, he is a resident for the whole of 2026-27.

That makes his return for the year a resident return covering worldwide income. His Indian salary from April to January goes in, as expected. So does the Dubai salary he earns from late January to the end of March — because the year is resident, that foreign income is part of his worldwide income for the year, even though he earned it after leaving. The UAE levies no personal income tax, so there's little foreign tax to relieve here; had he moved to a country that does tax salary, the tax paid there on that post-move income would generally be creditable so the same income isn't taxed twice. He files on ITR-2, which carries salary, any capital gains, and the foreign-income reporting.

From 2027-28 onward Karthik is a non-resident, and his returns from that year only pick up his Indian income — rent, interest, any India capital gains. The contrast is the lesson: the move year behaves like a resident year because of when he left, while every year after behaves like an NRI's. Had he flown out in, say, July — before crossing 182 days — 2026-27 itself would have been a non-resident year and the Dubai salary would never have touched the Indian return.

What's involved

What the CA actually does

  1. 1

    We fix your status for the move year first

    We run the 182-day count (Section 6, employment-abroad rule) on your actual travel dates so we know whether the year you left is a resident year or a non-resident year — the one fact the whole return depends on.

  2. 2

    We work out what's actually taxable

    If the year is resident, we identify the worldwide income that comes in — including foreign salary earned after the move — and where double-tax relief applies. If it's non-resident, we confirm only your Indian income is in scope, so nothing foreign is over-reported.

  3. 3

    We claim relief for tax you paid abroad

    Where a resident move year pulls in foreign salary that was also taxed in the country you moved to, we claim the available foreign-tax relief so the same income isn't taxed twice — and handle the reporting that relief requires.

  4. 4

    We file the return on the right form

    We prepare and file on ITR-2 — the form for salary, capital gains and foreign income without an Indian business — with the residential-status, salary and foreign-income schedules completed consistently with the day-count.

  5. 5

    We set the baseline for your NRI years ahead

    We make sure the year after the move is set up cleanly as a non-resident year, so your future returns pick up only your Indian income and the transition out of the move year is documented rather than ambiguous.

What to have ready

Documents you'll typically need

  • Passport with entry / exit stamps, or a travel-dates summary, for the move year
  • Your exact departure date and the reason (employment abroad)
  • Indian salary details and Form 16 for the part of the year you worked in India
  • Foreign salary / payslips earned after the move
  • Any foreign tax paid on that post-move income, for relief purposes
  • Indian income that continues — rent, FD interest, dividends, capital gains
  • PAN and bank account details for any refund

Your destination country can change the details

Requirements differ from one consulate, university and visa route to the next — how recent the figures must be, how long funds must have been held, and which certificates are mandatory. We assemble the documents around the exact checklist you're applying under. To see how India's tax treaty with your country of residence affects related filings, set your country below or compare all 31 countries.

Frequently asked questions

Common questions

Left India mid-year and unsure how to file for that year?

Tell us your departure date and what you earned before and after. A practising CA will fix your status for the year and file the return correctly — on a free call, no obligation.

No card, no obligation. All certification and filing work is handled by ICAI-registered practising Chartered Accountants.