For income tax, residential status depends mainly on the number of days spent in India in a year. Foreign exchange rules (FEMA) use a different test based on intention and purpose of stay. NRIs pay Indian tax only on income earned or received in India and must convert resident bank accounts into NRO accounts.
Finance glossary
What is NRI?
A Non-Resident Indian: an Indian citizen who lives outside India and is not a resident under tax or foreign exchange rules.
