NRI
A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for work, residence or any other purpose.
Strictly speaking, the term “non-resident” is an economic concept and refers only to the tax status of an person who, as per section 6 of the Income-tax Act of 1961, has not resided in India for a specified period for the pur
- for or on taking up employment outside India; or
- for carrying on outside India a business or vocation outside India; or
- or any other purpose, in such circumstances as would indicate his intention to stay outside India for a uncertain period
What are the benefits of being a NRI?
- You can get special bank accounts from Indian banks.
- You can continue to own land and property in India.
- Your earnings outside India are not taxed by the Indian government, provided you have paid taxes in the nation you reside in. Local earnings in India (interest, rental income) are still taxed.
- There is a special quota of seats in Indian universities reserved for NRIs.
- You can still vote, but you have to be in India to do it.
What are the drawbacks?
- You may need permission to take out money invested in India.
- You may not purchase agricultural land or farm houses.
- You may not hold a government job.
- You may not be elected to a political position.
How do you become an NRI?
There is no application form needed. The only official record of being an NRI comes on your yearly tax filing. This status can change from year to year. If you wish to open an NRI bank account, you simply need to inform your bank of your plans.
