NRI - who is Non Residenet Indian?

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.Top
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.