There are many speculations about the definition of NRI. The residential status of an individual in India can be confusing on many occasions. The situation can be more confusing when it comes to staying abroad. Usually, the term NRI finds applications for the Indian residents who are currently staying abroad for employment. The circumstances determining the stay of an individual abroad might impact the NRI status depending on the tenure. If the duration of stay is uncertain, the individual may get NRI status with obligations.
Different Definitions Of NRI under different Acts :
Generally An NRI is a person resident outside India who is a citizen of India or is a person of Indian origin. However there are different definitions of NRI under FEMA and Income Tax Act. We at SGA being a NRI Tax Advisor Pune, help our NRI clients to understand the complex provisions of the definition of Residents, Non Residents, Residents but not Ordinarily Residents & Deemed Residency.
Definition of NRI under FEMA:
Under the Foreign Exchange Management Act (FEMA), generally, a person is resident outside India if he is in India for less than 182 days during the course of the preceding financial year and also includes any person who stays abroad:
- For the purposes of carrying out employment or any business or vocation;
- Under circumstances indicating an intention to stay outside India for an uncertain duration;
- Any Indian citizen deputed outside India for a temporary period in connection with employment for education
Definition of NRI or Residential Status under the Indian Income Tax Act, 1961 :
From the FY 2020-21 , an individual is resident in India if he is in India in the financial year for:
- 182 days or more; or
- Has been in India for 365 days of more during the 4 immediately preceding financial years and for 60 days or more during the financial year (the period of 60 days stands changed to 120 days or more for Indian citizens or persons of Indian origins on a visit to India whose total income in india is less than INR 15 lacs , and the period of 60 days stands changed to 182 days for citizens of India who leave India for employment abroad as member of a crew of an Indian ship). As amended by Finance Bill 2020.
Genrally, an individual who does not satisfy the above conditions is a non-resident.
Also from FY 2020-21 , A resident is “not ordinarily resident” in India in any financial year if he:
- Has been “non-resident” in India in any 9 out of the 10 previous years preceding that year
- Stay in India for 729 days or less during the 7 previous years preceding the relevant previous year.
We at SGA, as a NRI Tax Consultant in Pune, provide various NRI Advisory Services Pune, like Evaluation of NRI Residential Status, Applicability of New Provisions of Deemed Residency applicable from FY 2020-2021 onwards , NRI Income Tax Consultation, NRI Income Tax Returns Filing, NRI Investment Advisory Services, NRI Tax Implications on Sale of Property, 15CA CB Advisory and Certification Services for remittance of funds outside India , etc .