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Non-Resident Indian Meaning
An Individual is considered an NRI who stays in India for less than a period of 182 days during the period of the preceding financial year. They can be an individual who has gone out of India for the purpose of business, employment, or education.
The definition of a Non-Resident Indian is provided in the Income Tax Act 1961. As per section 6 of The Income-tax Act, 1961, NRI (Non-Resident Indian) is a citizen who has not resided in India for a specified period for the purposes of the Income Tax Act. The Income Tax Act, of 1961 and the Foreign Exchange and Management Act, of 1999, is used for regulating different financial activities of an NRI.
Read More: Citizenship
Non-Resident Indians Eligibility Criteria
The eligibility criteria for NRI status are that the person should be an Indian citizen with a valid Indian passport and should reside outside of the Republic of India. Being an NRI is only a residential status classified by the Income Tax of India.
Benefits for NRIs
- First, the education system of India allows special reservation quotas for NRIs.
- Second, banks offer special overseas accounts like RFC/CNR/NRE/NRO for NRIs.
- Third, they can vote in elections in India by being physically present here.
- Fourth, income earned abroad is not taxable by the Income Tax Department of India.
Read More: Constitution of India
Non-Resident Indians Limitations
They do receive any benefits provided by the Government of India that are enjoyed by the Indian citizens. Although don’t have to pay tax on Income to the Government of India, they pay taxes to the government of the country they reside, and the rate of tax on income is higher than in India in most of the country
Any person (who is not an illegal immigrant) who fits into one of the following categories may, upon application, be registered by the Central Government as an Indian citizen. They cannot purchase agricultural land.
Read More: Fundamental Rights of Indian Constitution
Aadhar Card for Non-Resident Indian
Residents of India can currently enrol on an Aadhaar Card. OCI Cardholders who reside in India and stay there frequently (more than 182 days per year). Despite being Indian nationals, NRIs who have not lived in India for more than 182 days in a year are not eligible for an Aadhaar card.
Read More: Constituent Assembly of India
Person of Indian Origin (PIO)
A Person of Indian Origin (PIO) refers to a foreign citizen (except a national of. Pakistan, Afghanistan Bangladesh, China, Iran, Bhutan, Sri Lanka, and Nepal) who at any time held an Indian passport. Or. who or either of their parents/ grandparents/ great grandparents was born.
Read More: Reorganisation of States
Person of Indian Origin Eligibility Criteria
- The person has held an Indian Passport at any time; or
- The person who or either of his/her parents/ grandparents/ great grandparents were born and permanently resident in India.
- The definition of resident here is derived from the Government of India Act 1935.
- The External Affairs Ministry has barred residents of Pakistan, Bangladesh, Bhutan, Nepal, China, Iran, and Sri Lanka.
The PIO Card scheme was launched by the government to provide Persons of Indian origin with certain privileges. Indian Government on 9th January 2015 the Person of Indian Origin Card scheme was withdrawn and merged with the Overseas Citizen of India card scheme. PIO cardholders must apply to convert their existing card to OCI cards. PIO Card would continue to be a valid travel document in India till 31st December 2022.
Difference Between NRI, OCI and PIOs
|Element of Comparisons||Non-Resident Indian (NRI)||Person of Indian Origin (PIO)||Overseas Citizen of India (OCI)|
|Who?||An Indian Citizen who holds an Indian passport is living outside India.||A person or his ancestors were Indian in the past but now that person holds a passport of another country.||A person who holds an OCI card issued under the Citizenship Act 1955.|
|Which nationals are ineligible?||–||–||Pakistan, Bangladesh or any other country that is not allowed by the Government of India|
|What beneﬁts one is entitled to?||All benefits of an ordinary Indian citizen||None||
|Visa requirement for visiting India||No||Yes||No|
|Requirement to register with local police authority||No||Yes if staying longer than 180 days in India.||No|
|What activities can one do in India?||All activities||Depending on the visa type||All activities except research work. Research work will need special permission.|
|How can one become an Indian citizen?||Already a citizen||As per Citizenship Act 1955, he/she has to live in India for at least 7 years before applying for citizenship||As per Citizenship Act 1955, he/she has to live in India for five years, in which he/she has to live in India for 12 months continuously before applying for citizenship.|