What are the tax implications of being a Resident but Not Ordinarily Resident (RNOR) under the Income Tax Act?

Individuals classified as Resident but Not Ordinarily Resident (RNOR) are liable to pay tax in India on their Indian income and income received or deemed to be received in India from foreign sources. However, their foreign-sourced income which is not received or deemed to be received in India is exempt from tax in India. RNORs are subject to special tax rates and enjoy certain tax benefits compared to RORs.