ICAI Releases Handbook on Residential Status for NRIs: Key Tax and FEMA Aspects Explained:

ICAI’s new handbook explains residential status under the Income-tax Act and FEMA, covering key tax implications for NRIs amid changes introduced by the Income-tax Act, 2025.

ICAI Handbook on NRI Residential Status

Saloni Kumari

Aug 13, 2026

Last update on Aug 13, 2026

The Institute of Chartered Accountants of India (ICAI) has released a publication titled "Handbook on Residential Status for NRIs Tax and FEMA Aspects". The handbook has comprehensively explained the principles governing residential status under both the Income Tax Act and FEMA, allowing readers to understand and resolve practical problems without any ambiguity, with greater confidence.

The president of ICAI has sincerely appreciated the efforts of the CA. Satish Kumar Gupta, Chairman; CA. Vishnu Kumar Agarwal, Vice-Chairman; and all members of the International Taxation Committee and the Study Group involved in preparing this useful publication for giving their valuable time.

In India, determining an individual’s residential status has become increasingly important due to the growing movement of professionals, investments, and businesses across countries. Although the rules for determining residential status are well established, applying them has become more complicated.

Many Indian professionals now work abroad and return to India after short periods. Families may spend time in different countries, while individuals may have investments, properties, and businesses in several jurisdictions. Therefore, the traditional idea that a person belongs to only one country during a financial year may not always reflect today’s realities.

Residential status determines the extent of a person’s tax liability in India. The introduction of the Income Tax Act, 2025, has added another aspect to this area. It restructures and renumbers the provisions relating to residential status that were in place for more than six decades. Taxpayers and professionals will therefore need to understand two laws: the Income-tax Act, 1961, for earlier years and the Income-tax Act, 2025, for future years. At the same time, they must understand both the continuing principles and the changes introduced by the new law.

For more information, refer to the official PDF of the publication.

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Saloni Kumari

Content Writer

Saloni is a Content Writer with 2+ years of experience at studycafe.in. She writes legal, taxation, and finance related content including GST, Income Tax etc. Skilled in translating complex judicial pronouncements and regulatory developments into clear, and reader-friendly articles. Experienced in covering judgements of ITAT, High Court, GSTAT, and news related to Income Tax, GST, and corporate law. She can be reached at [email protected].