A person of Indian origin or citizen living outside India will be treated as Non Resident Indian or NRI if they satisfy the conditions of becoming a non resident. The concept of non resident depends on number of days the person stays in India.
A person will be treated as resident if he is in India for a period more than 182 days during the financial year starting from 1st of April to 31st March. If you are in India for less than 182 days then you may be treated as a non resident if you do not satisfy the additional conditions.
In addition to the 182 days concept you also required to satisfy another additional condition. If you are in India for 60 days or more during the financial year and 365 days or more during the earlier four financial year then instead of being non resident you will be treated as resident even though you are less than 182 days in India during the current financial year.
However, two relaxations are available for the period of 60 days criteria by which an Indian citizen will not become a resident;
First Relaxation for non residents
It applies only to an Indian citizen. If an Indian citizen leaves India for the purposes of employment to outside India or travel as a member of the crew of an Indian ship during the relevant financial year then instead of the requirement of 60 days or more, the requirement is 182 days or more will be applicable.
Therefore, an Indian citizen who is leaving India for a job outside India would not be treated as a resident, if he is in India for less than 182 days during the relevant financial year.
Second Relaxation for non residents
The second relaxation applies to an Indian citizens and a Person of Indian Origins. A person will be treated as a person of Indian origin if he or any of his parents or grandparents has taken birth in undivided India.
Second relaxation will be available when an Indian citizen or a person of Indian origin stays outside India and comes on a visit to India during the financial year.
In such a case, the period of 60 days or more will be replaced with the period of 182 days or more. With this, most of NRIs who are coming to India for a visit to their relatives once a year and stay for less than 182 days need not fear of becoming a resident of India for income tax purpose.