Non-Resident Indian
Who is NRI
As per the Income Tax Act, 1961, an NRI (Non-Resident Indian) is an individual, being a citizen of India or a person of Indian origin, who is not a resident in India. An individual is considered a non-resident if they stay in India for less than 182 days in a financial year or if they stay for less than 60 days in the current year and less than 365 days in the preceding 4 years.
Key Criteria for NRI Status (Section 6)
- Basic Rule: An individual is an NRI if they do not satisfy the criteria for a resident.
- Physical Presence Rule: To be considered a non-resident, the individual must have spent less than 182 days in India during the financial year (April 1 to March 31).
- Alternative Criteria: An individual is also an NRI if they are in India for less than 60 days in the current financial year AND less than 365 days in the 4 preceding financial years.
Exceptions and Important Provisions
- Indian Citizens/PIO Leaving for Employment: For an Indian citizen or a Person of Indian Origin (PIO) visiting India, the 60-day rule is extended to 182 days. This means they are considered an NRI unless they spend 182 days or more in India.
- Indian Citizens Leaving for Employment: A similar 182-day exemption applies to an Indian citizen who leaves India for employment purposes or as a crew member.
- Deemed Residency (Finance Act 2020): An Indian citizen with total income (excluding foreign income) exceeding Rs. 15 lakh is deemed a resident if not liable to tax in any other country, though they may still be treated as Not Ordinarily Resident (RNOR).
- Taxation Rule: NRIs are taxed only on income earned or received in India.
Who is NRK
As defined under Non-Resident Indians' (Keralites) Commission Act, 2015 Section 2(e) "Non-resident Indians' (Keralites)" means a person of Indian citizen domiciled in Kerala who is either permanently or temporarily settled outside India for, -
- (i) taking up employment outside India; or
- (ii) carrying on a business or vocation or for studying outside India; or
- (iii) any other purpose, in such circumstances, as would indicate his intention to stay outside India for an uncertain period.
RNOR
A person is considered "Resident but Not Ordinarily Resident (RNOR)" in India for a given previous year if they meet the following conditions:
The individual should be a resident i.e., should satisfy both the conditions to become a resident and the individual has been a non-resident in India in 9 out of the 10 previous years preceding the relevant financial year or should have stayed in India for less than 730 days in the 7 years preceding the relevant financial year.
A citizen of India, or a person of Indian origin, who has income exceeding Rs. 15 lakh from sources other than foreign income and has stayed in India for 120 days or more but less than 182 days during the relevant financial year.
Indian citizen having total income (other than foreign source income), exceeding Rs. 15 lakhs during the PY shall be deemed to be resident but not ordinarily resident in India in that relevant financial year if he is not liable to pay tax in any other country or territory by reasons of his domicile or residence or any other criteria of similar nature.
Person of Indian Origin (PIO)
An individual is considered a PIO if they, or either of their parents or any of their grandparents, were born in undivided India.
Taxability of NRI / RNRO
If you are a NON-RESIDENT INDIAN (NRI), any income that is 'earned' or 'accrued' in India is taxable in India. Your Income outside of India is not taxable in India.
The salary of a non-resident seafarer for services outside India on a foreign ship will not be included in the total taxable income of the seafarer, even though such salary is credited to the NRE account of the seafarer with an Indian bank.
For instance, seafarer rendered services in Europe and spent less than 182 days in India and the company credited his salary to the NRE account with an Indian bank, then this income will not be included in the total taxable income of the seafarer.
If you are a RESIDENT BUT NOT-ORDINARILY RESIDENT (RNOR) and just returned to India, you are allowed to keep your RNOR status for up to 3 financial years post your return back to India. It could benefit you in a big way since your taxation will be very much in line with that of an NRI and therefore income that you may earn outside of India (while you may have returned) will continue to be not taxed in India. Therefore like an NRI -
- Any income that is 'earned' in India is taxable for you in India
- Your income outside of India is not taxable in India
However, once you have attained the status of a Resident, all of your income within and outside India will be taxable in India, barring any concessions that may be available under the Double Taxation Avoidance Agreement (DTAA) between India and the country from where your overseas income has arisen.
NRI (Kerala) Commission
Commission for Non Resident Indians hailing from Kerala was constituted under Non-Resident Indians' (Keralites) Commission Act, 2015 with a view to protect and safeguard their interest in the State of Kerala and to recommend remedial measures for their welfare and for matters connected therewith or incidental thereto.
Commission is empowered to consider all petitions or communications received from a Non-resident Indian or from any other person on his behalf, alleging disputes or such violation or denial of justice by a public servant or a private person or from Institutions including Government/Quasi Government/Public Sector Institutions/Bank or such providing material on the basis of which the Commission takes suo-moto cognizance. It have all the powers as are vested in a Civil court while trying a suit under the Code of Civil Procedure, 1908.
Kerala Police NRI Cell
The Cell is functioning in Police Headquarters, Thiruvananthapuram headed by a Superintendent of Police, is functioning under the direct supervision of ADGP Head quarters and IGP Head quarters. The NRI Cell handles exclusively the complaints of Non-Resident Keralites and their family members as enquire into petitions relating to allegations of Visa cheating, fraudulent man power recruitment by agencies, trafficking of woman to other countries, especially Gulf,, physical and mental harassment of NRIs at their overseas work places, etc. The petitions are received in this office directly from the aggrieved persons, through the Government of Kerala, other Government Authorities and State Police Chief.
Kerala Police NRI Cell e-mail - spnri.pol@kerala.gov.in
