As
per FEMA Defination :
NRI is defined as a person resident outside
India who is citizen of India.
In terms of Regulation 2 FEMA Notification No.13 dated
May 3, 2000, Non-Resident Indian (NRI) means a person
resident outside India who is a citizen of India. Person
of Indian Origin (PIO) means a citizen of any country
other than Bangladesh or Pakistan who had (a) at any time
held Indian passport or (b) he or either of his parents
or any of his grand -parents was a citizen of India by
virtue of the Constitution of India or the Citizenship
Act 1955 or (c) the person is a spouse of an Indian citizen
or a person referred to in (a) or (b).
The
NRI, as per the IT Act, 1961
The definition
of Non-Resident under FEMA is different from that given
in the Income Tax Act. Chapter XI of the Act defines a
non-resident Indian as an individual, being a citizen
of India or a person of Indian origin, who is not a resident.
A person is of Indian origin if he or either of his Indian
parents or any of his grand parents was born in undivided
India. To avail of tax sops extended to NRIs, an individual
must satisfy the following criteria
-
A person who has been in India for 60 days or more during
a financial year and 365 days or more during the preceding
four financial years qualifies as a 'Resident' of India.
This has been relaxed and can be extended to 182 days.
Not meeting this criterion qualifies the individual
for a "non-resident" status.
-
NRIs based outside India can continue to enjoy non-resident
status in India if their presence in India is more than
60 days but less than 182 days, even if their stay in
India during the past four financial years is 365 days
or more
-
Having been deputed overseas for over 6 months also
qualifies an individual for NRI status.
The relaxation to 182 days applies to :
-
Indian crew members sailing overseas on Indian ships
- their stay abroad is treated as employment outside
India
-
In the case of Indian citizens as well as in the case
of "Persons of Indian Origin" who are settled
abroad but visit India for personal reasons.
The concession of extended stay is available only to
Indian citizens or to "persons of Indian origin"
A "Person of Indian origin" is a person who
is not an Indian citizen, but was born, or either of
his parents or grandparents was born in India.
Any other company or Association of Persons is treated
as non-resident when the control and management of its
affairs is situated throughout the year wholly outside
India.
It follows that in cases of non-Individual categories
of persons, it is the control and management that determines
whether that person is Non-resident or otherwise. If
the control and management is in India, the status is
Resident, if outside India, it is non-resident.
