Know About What is NRI, NRI Taxation and Difference between NRI and PIO?
Many citizens of India (Resident Indian or Indian citizens) are living abroad. Most of the Indians go abroad for the purpose of getting employment and education. After some time some Indians settle abroad indefinitely or spend more time in foreign country than India. They are called NRIs. At present, the number of students from India to study abroad is increasing. Indians also have to go abroad for many other reasons. There he gets the citizenship of a foreign country. According to a report, foreign exchange from abroad is sent by Indians the most.
NRIs form a significant part of the Indian diaspora. Overseas Indians have contributed to India’s development in a variety of ways, including foreign investment, trade, technology, innovation and expertise. Indians have also contributed a lot to the development of other nations. NRIs can be classified into three categories according to their residency status: The Government of India provides an Overseas Citizen of India (OCI) card for NRIs that entitles them to all the economic and educational benefits they deserve.
The Government of India classifies PIOs into three broad categories: Non-resident Indians (NRIs), Overseas Citizens of India (OCIs), and Persons of Indian Origin (PIOs) without citizenship. A Person of Indian Origin (PIO) card is issued by the Government of India to people who are of Indian origin or birth, but residing abroad. A PIO card does not entitle anyone to enter India without a valid passport and visa. Some countries, such as the United States and Canada, provide PIOs with the same rights and privileges that they would to a foreign national.
Overseas Indians are often referred to as non-resident Indians or persons of Indian origin. Overseas Indians are people of Indian origin or ancestry, who are residing outside India. There are estimated to be around 24 million overseas Indians living in countries around the world. Most of them live in the United States, with about 3 million in Canada and 1 million each in the United Kingdom and Malaysia. Non-resident Indian is a term used to describe foreigners of Indian origin who have moved away from India, and have settled in other countries.
In many countries the Indian population is very large in the form of NRI (aka Indian Origin) like Canada, America, England etc. But through this we can also say that there is a lot of contribution by Indians in the interest and construction of many countries. Indian promising students who complete their education from the top universities and institutions of the country like IITs, IIMs, NITs etc. do jobs in foreign countries and contribute to the social and economic development of that country. Today we will know about NRIs in detail and also throw light on how they work for the development of the country even outside the country.
What is NRI?
According to India’s Foreign Exchange Management Act 1999 (FEMA), NRIs are defined as follows:-
- NRI is an Indian who stays in India for less than 182 days in a year.
- An Indian who has moved out of India or resides outside India for the purpose of employment.
- Indians who are residing outside India for the purpose of doing business or business.
- Indians who stay outside India for an indefinite period of time without any reason.
- NRI is a status which is given to an Indian citizen holder who does not face any inconvenience in the income tax process and does not have to face trouble due to rules like double tax. It does not tell the status of citizenship but tells the income tax status of the person which has been reported under FEMA.
Difference between NRI and PIO:
The full form of PIO is Person of Indian Origin. Persons who are not Indian citizens but are born within the territory of India (except Bangladesh and Pakistan) are known as PIOs or you can also call them persons of Indian origin. In history, their mother and mother would have got Indian citizenship on the basis of the rights given by the constitution, that is, they must have been Indian citizens once. As the main difference, where NRI is still an Indian citizen, a Person of Indian Origin (PIO) has a citizen of the same country and not an Indian citizen.
NRI Full Form:
The full form of NRI is Non-Resident Indian, in Hindi it is known as Non-Resident Indian. Keep in mind that all these NRIs are Indian citizens and are abroad for various purposes, the definition of which you have already read.
NRIs are provided tax exemption under the provisions of FEMA. Every NRI has to pay tax on the income received in India. Apart from this, the salary he receives from abroad, his tax is deposited only in the foreign country. The money sent by that person is added to the foreign exchange reserves of India.
NRI Status is provided by the Income Tax Department. Its determination is determined according to the time of stay in India. This gives information about the purpose of the person’s stay abroad.
If a citizen of India is residing abroad, then Aadhar card is also necessary for that. Aadhar card is not linked with citizenship. But it can be a proof for him to be an Indian citizen.