2.0 NRI UNDER INCOME TAX ACT 1961
3.0 NRI UNDER FOREIGN EXCHANGE MANAGEMENT ACT 1999
4.0 OVERSEAS CITIZEN OF INDIA (OCI)
5.0 Merger of PERSON OF INDIAN ORIGIN (PIO) & OVERSEAS CITIZEN OF INDIA (OCI)
6.0 BENEFITS OF NRI/PIO/OCI STATUS
6.1 MAINTENANCE OF BANK ACCOUNTS IN INDIA
6.2 ACQUISITION AND TRANSFER OF IMMOVABLE PROPERTIES IN INDIA
6.3 INVESTMENTS IN SECURITIES/SHARES OF, AND DEPOSITS WITH, INDIAN FIRMS/COMPANIES AND OTHER INVESTMENTS
6.4 IMMOVABLE PROPERTIES ABROAD
6.5 FACILITIES TO RETURNING NRI
6.6 FACILITIES TO STUDENTS
6.8 INTERNATIONAL CREDIT CARDS
6.9 TAX CONCESSIONS
6.10 ADVANCE RULINGS
6.11 RESERVED SEATS
6.12 REMITTANCE FACILITIES FOR NON RESIDENT INDIANS (NRI)/ PERSONS OF INDIAN ORIGIN (PIO)
7.0 INVESTMENTS IN INDIA
The ‘Residential Status’ of a person has to be determined for the purpose of taxation, foreign exchange management laws and Investments in India.
Residential status is the most important factor for determining the applicability and incidence of both the Income Tax Act, 1961 and the Foreign Exchange Management Act 1999 (FEMA), amongst other applicable laws.
However manner of determination of residential status is different under Income Tax Act and Foreign Exchange Management Act. Under the Income Tax act, 1961 the residential status of a person being assessed to tax, is determined based only on the ‘number of days of stay’ in India. Under FEMA, residential status is determined in addition to the above, on the ‘intention’ of the person to stay in India.
Under Section 115C (e) of the Income Tax Act, Non Resident Indian (NRI) is defined as ‘An individual being a citizen of India or a person of India origin (PIO) who is not a resident’. A person is deemed to be a PIO if he or either of his parents or any of his grandparents, was born in undivided India. The Residential Status referred here is as per the provision of Sec 6 Income Tax Act 1961.
The Overseas Citizenship of India (OCI) Scheme was introduced by amending the Citizenship Act, 1955 in August 2005. The Scheme provides for registration as Overseas Citizen of India (OCI) of all Persons of Indian Origin (PIOs) who were citizens of India on 26th January, 1950 or there after or were eligible to become citizens of India on 26th January, 1950 except who is or had been a citizen of Pakistan, Bangladesh or such other country as the Central Government may, by notification in the Official Gazette, specify.
The OCI documents consist of OCI Registration Booklet and a Universal visa sticker. It is mandatory for registered OCIs to carry their passports which carry the Universal visa sticker for entry into / exit from India.
OCI registration booklets of OCIs are treated as their identification for any services rendered to them. In case proof of residence is required, Overseas Citizens of India may give an affidavit attested by a notary public stating that a particular/specific address may be treated as their place of residence in India and may also in their affidavit give their overseas residential address as well as e-mail address, if any.
The fee for application for OCI card is US $ 275 or equivalent in local currency for each applicant. In case of PIO card holder, US $ 25 or equivalent in local currency for each applicant. In case of application filled in India, fee Rs.15,000/- for general category, for PIO card holders Rs.1,400/- and for minor PIO card holder Rs.8,000/- to be paid by way of Demand Draft. Application is to be made to the Indian Mission/Post of the country of citizenship of the applicant..
Facilities Available to OCI Card Holder
Following benefits will be allowed to an OCI:
(a) doctors, dentists, nurses and pharmacists;
(d) chartered accountants;
Any other benefits to an OCI will be notified by the Ministry of Overseas Indian Affairs (MOIA) under Section 7B(1) of the Citizenship Act, 1955.
The limitations of OCI status are: