Full Form of NRI

Full Form of NRI – Non-Resident Indian

Full-Form of NRI is a Non-Resident Indian, an individual who is a non-resident in India. A non-resident Indian, as defined under FEMA Act, is an individual of Indian origin, a person citizen of India, an overseas citizen of India, or a decedent of Indian who is staying outside the republic of India for the purpose of employment there, for a minimum period of 183 days during the preceding financial year as per the conditions mentioned to become a non-resident.

A non-resident Indian, in general terms, is the person, specifically an individual being Nonresident as per the conditions of residence in the income tax Act 1969 and is resident outside India for the purpose of employment. The fulfillment of conditions is checked for the preceding financial year to be a nonresident in the current financial year.

Categories of NRI

A Nonresident Indian can be categorized into the following:

#1 – Person of Indian Origin Not Being Resident of India

  • A person of Indian Origin is a person either born in India, or either of their parents / Grandparents are born in non-partitioned India or is having an Indian passport. A person can also be termed as NRI if the spouse of such a person is an Indian citizen.

#2 – Overseas Citizen of India

  • These foreign citizens have Indian origin, which authorizes them to stay and work in India for an indefinite time.
Full Form of NRI

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What are the Reasons for Becoming an NRI?

What are the Reasons for Becoming an NRI

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A lot of Indian public are migrating towards other countries like America, Canada, and the United Kingdom, etc. for various reasons like employment, earnings, business, education, etc. From those Indians, people who go there for employment purposes for a specific period of time or more than that, they become NRI. The following are various reasons for becoming a Non-Resident Indian:

  • As per Income Tax Act: Accordingly, where a person doesn’t stay in India for 183 days or more OR a person either doesn’t say for 60 days in India or doesn’t stay for 365 days in the previous 4 years, then he will be considered as the NRI. The above condition is to be checked in the preceding financial year for gaining the status of NRI in the current financial year.
  • As per Foreign Exchange Management Act: according to FEMA, a person is called a non-resident individual if such person does not stay in India for a period of 183 days or more for in preceding financial year.

Use of Term NRI

The term Non-Resident Indian is used in various fields in the economy.

Some Precautions for NRI

Some Precautions for NRI

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The following things are to be taken care of if a person gains a status of Non-Resident Indian:

Hence above precautions shall be taken into considerations while gaining the status of Non-Resident Indian.

NRI Status

The residential status of Non-Resident Indian is always non-resident in the country of India. To decide whether a person is a resident or NRI, the provisions of the Income Tax Act 1961 are used for determining the residential status that should be taken into consideration. When none of the conditions of ordinary residents or residents are met, then the person is called non-resident.

Different Types of NRI Accounts

Different Types of NRI Accounts

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The following are the various types of Non-Resident Indian accounts.

  1. Non-resident Ordinary (NRO) saving account
  2. Non-Resident External (NRE) saving account
  3. Non-Resident Ordinary (NRO) fixed deposit accounts
  4. Non-Resident External (NRI) fixed deposit accounts.
  5. Foreign exchange Non-resident Fixed Deposit account.

Conclusion

Thus discussed, the status of a non-resident is gained by the provisions of the act enacted under the Indian economy; after considering those provisions, a person is stated to be NRI or a resident Indian. Further of such a person moves out of India to another country’s reasons like employment it education business extra. After obtaining the status of Non-Resident Indian, the above-mentioned precautions should be given atmosphere importance so that financial and other transactions can be Run smoothly and direct tax benefits can be obtained, and the non-resident Indian can also obtain the relief mentioned under DTAA.

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This has been a guide to the Full form of NRI, i.e. (Non-Resident Indian) and definition. Here we discuss reasons for becoming a Non-Resident Indian along with its Uses, precautions, and categories. You may refer to the following articles to learn more about finance –

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