Who is an NRI?

Definition for NRI is available under India’s Foreign Exchange Management Act 1999 (FEMA) and Indian Income Tax Act.

Under FEMA NRI is an Indian citizen or Foreign National of Indian Origin resident outside India for purposes of employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period. An individual will be considered as NRI if his stay in India is for less than 182 days during the preceding financial year.

As per the provisions of Indian Income Tax Act, an individual will be considered as NRI if his stay in India is less than 182 days during the preceding financial year. NRI is an individual who is a citizen of India or a person of Indian origin and who is not a resident of India. Thus, in order to determine whether an Individual is a non-resident Indian or not, his residential status is required to be determined under Section 6 of Income-Tax Act. As per section 6 of the Income-tax Act, an individual is said to be non-resident in India if he is not a resident in India and an individual is deemed to be resident in India in any previous year if he satisfies any of the following conditions:

 1.  If he is in India for a period of 182 days or more during the previous year; or

 2.  If he is in India for a period of 60 days or more during the previous year and 365 days or more during 4 years immediately preceding the previous year.

However, condition No. 2 does not apply where a an individual being citizen of India or a person of Indian origin, who being outside India, comes on a visit to India during the previous year.