NRIs CORNER NRIs - REGULATIONS & FACILITIES

INTRODUCTION:

A "Non Resident Indian", popularly known as NRI has multiple meanings popular ones being “Now
Required Indian” ; “Neo Rich Indian” ; “Newly Respected Indian” and for some having a bad experience
“Never Return to India” or as Om Puri used to say in a TV serial in his typical North Indian accent "Bha Bha
Bha" - Bharat Se Bhagha Bharatiya.

Jokes a-part, an NRI is independently defined under Foreign Exchange Management Act (FEMA), 1999
which is based on permanent residence of an Overseas Indian who may be an Indian citizen or Person of
Indian Origin i.e. foreign citizen of Indian Origin permanently settled and residing outside India for purpose
of employment, profession, vocation, business or having a permanent home and family ties abroad.

On the other hand, a 'Non-Resident's definition under the Income Tax Act, 1961 (IT Act) is wedded to
number of days of an individual's stay in India during a particular financial year. Normally an NRI is said to
be Non-Resident under IT Act if his stay in India does not exceed 181 days in a financial year which
commences on 1st April and ends on 31st March. A few simple examples may make subject-matter crystal
clear.

1..01 If Lakshminiwas Mittal of Arcelor Mittal Group, being a foreign citizen of Indian Origin visits India
for personal reasons or for examining business opportunities, and stays for 360 days in a Financial Year , he
will continue to be a Non-Resident technically speaking a person residing outside India under
FEMA but under the IT Act he will be covered by the definition of "Resident" .
.02 For said reasons if Bill Gates of Microsoft Corporation was to visit India and stay for more than 181
days in a Financial Year say 01-04-2008 to 31-03-2009. he will also continue to be a Non-Resident under
FEMA but under the IT Act he too will be covered by the definition of "Resident" .,
2.But if Sachin Tendulkar travels out of India and stays abroad for all the 365 days of a year, hitting out
sixers and fours although a "Non-Resident" under Income Tax Act, 1961, he will continue to be a "Resident"
under Foreign Exchange Management Act [FEMA], 1999.

NRI Corner
Contact Us
Who is Non-Resident Indian?
An Indian Citizen who stays abroad for employment/carrying on business or vocation outside India
or stays abroad under circumstances indicating an intention for an uncertain duration of stay
abroad is a non-resident. (Persons posted in U.N. Organizations and Officials deputed abroad by
Central/State Governments and Public Sector undertakings on temporary assignments are also
treated as non-residents). Non –Resident foreign citizens of Indian Origin are treated on par with
non-resident Indian Citizens (NRIs) for the purpose of certain facilities.

Main categories of NRIs

The following are the main three categories of NRIs:-
(i) Indian citizens who stay abroad for employment or for carrying on a business or Vocation or any
other purpose in circumstances indicating an indefinite period of stay abroad.
(ii) Indian citizens working abroad on assignment with foreign government agencies like United Nations
Organization (UNO), including its affiliates, International Monetary Fund (IMF), World Bank etc.
(iii) Officials of Central and State Government and Public Sector undertaking deputed abroad on
temporary assignments or posted to their offices, including Indian diplomat missions, abroad.