Archive for the ‘NRI, PIO, Foreign Nationals, Foreign Trade, Exchange etc.’ Category.

Who is a Non Resident Indian?

The term Non Resident Indian (for brevity NRI) is widely being used, without knowing its exact meaning. Let us see how law defines an NRI.

Income Tax Act, 1961 defines “resident”, “not ordinarily resident” and “non resident”.

An individual is said to be a resident in India in any previous year, in the following two cases:
(a) if he is in India in that year for a period amounting in all to 182 days or more.
(b) if he was in India for 365 days or more within four years preceding the previous year, and he is in India for a period of 60 days or more in the previous year.

Previous year here means, the previous financial year, commencing from 1st April and ending on 31st March.

If a person who is an Indian citizen, leaves India in a previous year, for the purpose of employment outside India, he will be treated as a resident of India, only if he was in India for 365 days or more within four years preceding the previous year, and he is in India for a period of 182 days or more in the previous year.

If a person who is an Indian citizen, or a Person of Indian Origin comes on a visit to India from out side India, in a previous year, he will be treated as a resident of India, only if he was in India for 365 days or more within four years preceding the previous year, and he is in India for a period of 182 days or more in the previous year.