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NRI - Non Residenet Indians
Who is a Non-Resident?
Non-resident status, for exchange control purposes, is determined
by the nature of the stay abroad. Duration of stay in India is of
limited significance. If one is employed, has a business or pursues
a vocation one is a non-resident. If one has business interests
in India and abroad and travel frequently, resident status would
depend on the length of stay in India. To be eligible for retaining
Indian residency, the stay in India must be more than one hundred
and eighty two days during the course of the preceding financial
year.
Who is a Non-Resident
Indian?
You are considered a NRI if you are a non-resident and an Indian
citizen, a non-resident foreign citizen and of Indian origin.
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How do I know if I am a
person of Indian origin?
If you are a foreign citizen and want to open a bank account or
invest in Indian shares and securities, you are considered to be
of Indian origin if,
- You have at any time in your life held an
Indian passport
- You or any one of your parents or any one
of your grand parents were a citizen of India
- You are not of Indian origin but your spouse
is an Indian citizen or is a person of Indian origin. (Your bank
accounts and investments should be held jointly with your spouse)
If you are a citizen of Pakistan or Bangladesh,
you are not considered to be of Indian origin even if you meet the
above criteria.
If you want to acquire immovable property in India,
you are considered to be of Indian origin if you
- At any time, held an Indian passport or
- Your father or grandfather were a citizen of India
If you are a citizen of Pakistan or Bangladesh
or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan,
you are not considered to be of Indian origin even if you meet the
above criteria.
If I am a NRI, what happens
to my status when I come to India?
You become resident in India only when you come back to India for
employment, to carry on business or pursue a vocation. You also
become a resident if your stay in India is for an indefinite period.
What if I come to India for a holiday?
You continue to be a NRI when visits to India are for short periods
like holidays.
What if I come to India
on a business trip?
You remain a NRI on short business visits as long as you have a
job abroad.
If I am an NRI, what are
the investment opportunities available to me in India?
There is a wide range of investment opportunities for NRIs like
Bank Deposits, Government securities, public sector bonds, primary
share issues (both public and private placement), secondary equity
markets, convertible and non-convertible debentures, partnership
and proprietary concerns, start ups, mutual funds, company deposits,
immovable property.
If I invest in India, can
I take my money back?
If your investment has been allowed on repatriation basis, you can
take back abroad the principal and the income. If your investment
is on non-repatriation basis you can take back only the income.
Do I need permission to
invest in India on repatriation basis?
The Reserve Bank of India and Government of India have granted general
permission for certain kinds of investments like Bank Deposits.
For the rest permission is needed. Investments in IPOs and debentures,
the issuing company will get the necessary approval. Mutual Funds
also get RBI clearance.
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