NRI stands for Non-Resident Indian. NRIs are citizens of India and enjoy all kinds of facilities including voting power, just like a ‘resident of India.
Indeed India is one of the fastest-growing economies in the world. But Indian people are also taking off to different nations to expand their career horizons. Also due to globalization and increasing options of worldwide opportunities the population is rising day by day. A recent statement of the Ministry of External Affairs declares that there are more than 32 million Non-Resident Indians and Persons of Indian Origin(PIOs), who are currently living outside the Republic of India. To help this huge NRI population Indian government also avails different kinds of NRI investment and wealth management options for them. However, in this article, we are gonna discuss some important facts about the NRI population.
Who are the Non-resident Indians?
As per the FEMA, which is the Foreign Exchange Management Act of 1999, NRIs are those who are living outside the Republic of India for accomplishing their business, employment, or study-related works that signify their purpose to reside outside the country for an unpredictable duration.
What are the criteria for being an NRI?
Some basic criteria or features of Non-resident Indians are mentioned below.
- During one financial year, which is between 1st April to 31st March of the next year, an NRI individual can’t stay in India for more than 182 days. If an NRI will stay in India for more than 182 days, then they won’t be considered as an NRI.
- NRI people reside outside India for employment or to carry out their business.
- Also, a Student or researcher or someone else who resides in a foreign country for some reason implying his motive to live outside the homeland for a long uncertain duration will be considered as an NRI.
- Unlike PIO(Person of Indian Origin) or OCI(Overseas Citizen Of India), NRIs are citizens of India and they also possess an Indian passport.
Do the NRI people pay income taxes?
Whether a Non-Resident Indian person will pay income tax or not, that depends upon their residential status. Like, if currently an NRI is residing in India and receiving the salary, then that person’s global income will be considered taxable in India. As everything accomplished and accrued in India is taxable India. But whatever you earn outside The Republic of India will not be considered taxable.
For an NRI Interest received from an NRE account and FCNR account is contemplated as fully tax-free. But he/she must have to pay the income tax for the interest obtained from an NRO account.
Which countries have the most NRI population?
Whether it’s about the NRIs or PIOs, worldwide, approximately in every nation, some Indian people are residing and pursuing their dream. However with almost 4 million NRI population, Nepal is the country with the highest number of Indians, this comprises almost 14.7% of the total population of Nepal. Also with 3.1 million NRI, the USA is the second highest Indian populated country. Furthermore, millions of NRIs are living in Saudi Arabia, UAE, United Kingdom, Malaysia, South Africa, Australia, etc.
Is an NRI person able to purchase a residential property in India?
Yes, as per the authorization consented by RBI, an NRI person is allowed to buy a residential property in India. There is only one criterion, that is he or she needs to possess valid proof of address in India. There is no threshold set by the government considering how many residential properties an NRI individual can retain in India.