What is the 4 Year Rule for NRI?

According to the 4-year rule, the following conditions will be considered as a resident if:

• An individual who stays in India for more than 182 days or more in India in a financial year, then he or she will be considered a resident.
• Stayed in India for more than 60 days in a financial year, and 365 days or more in the last 4 years.  
• If an individual stayed for more than 60 days in the current financial year, and in India for a minimum of 365 days in the last 4 years, then the individual will be considered a resident.   

The 4-year rules for the NRI play a crucial role in deciding an individual's tax status. NRIs are only liable to pay taxes on their Indian earnings, but Indian residents are taxed globally on their earned income. 

The implications of the 4-year rule for the NRI are:

• If an individual is eligible for the NRI under the 4-year rule, then the foreign income they earn will not be taxable in India, and they will get the tax benefits. 
• NRIs get a lot of benefits which are related to banking and investments, like rules for repatriated funds, special deposit schemes. 
• NRIs should follow all the rules and regulations and must report their income and maintain all the documents.