What are the benefits of being an NRI?
• You can get special bank accounts from Indian banks.
• You can continue to own land and property in India.
• Your earnings outside India are not taxed by the Indian government, provided you have paid taxes in the nation you reside in. Local earnings in India (interest, rental income) are still taxed.
• There is a special quota of seats in Indian universities reserved for NRIs.
• You can still vote, but you have to be in India to do it.
What are the drawbacks?
• You may need permission to take out money invested in India.
• You may not purchase agricultural land or farm houses.
• You may not hold a government job.
• You may not be elected to a political position.
How do you become an NRI?
There is no application form needed. The only official record of being an NRI comes on your annual tax filing. This status can change from year to year. If you wish to open an NRI bank account, you simply need to inform your bank of your plans.
More benefits of NRI
1. Bank accounts- The NRI banking sector is very vibrant, particularly because the Indian government started to acknowledge this large group of people and provide it with numerous facilities and benefits.
2. Insurance policy- Another benefit that NRIs experience is the fact that they can enjoy tax exemptions on their incomes provided they register for a tax saving fund, pension plan, insurance policy as well as any other certifications. This is because the aforementioned options offer great returns to NRIs and thus will provide the expected tax exemptions.
3. Immovable assets abroad- Non-resident Indians can continue holding all their immovable assets outside India. These types of assets can either be rented out as rentals or be credited to the overseas bank accounts. The properties can then be transferred or sold with the proceeds of the sale being credited to overseas bank accounts. The best thing about this is that any expenses relating to these assets like insurance premiums and maintenance can be easily settled out of the remaining overseas balances.
Who can be a PIO?
“Person of Indian Origin” means a foreign citizen not being a citizen of Bangladesh, Pakistan or other countries as may be specified by the Central Government from time to time if;
i. He/she at any time held an Indian passport; or
ii. He/she either of his/her parents or grandparents or great grandparents was born in and was a permanent resident in India as defined in the Government of India Act, 1935 and other territories that became part of India thereafter provided neither was at any citizens of any of the aforementioned countries (as referred above); or
iii. He/she is a spouse of citizen of India or a person of Indian origin covered under (I) or (ii) above.
Benefits of a PIO card:-
(i) PIO card holders do not require a visa to visit India for a period of 15 years from the date of issue of the PIO card.
(ii) They are exempted from registration at FRRO/FRO if their stay does not exceed 180 days, In case if the stay exceeds 180 days, they shall have to register with FRRO/FRO within the next 30 days.
(iii) They enjoy parity with NRIs in economic, financial and educational benefits like:- Acquisition, holding, transfer and disposal of immovable properties in India, except agricultural/ plantation properties Admission of children to educational institutions in India under general category quota for NRIs , including medical and engineering college, IITs, IIMs etc Availing Various housing schemes of LIC of India, State Government and Central Government agencies All future benefits that would be exempted to NRIs would also be available to the PIO card holders. However, PIOs do not enjoy employment rights in Government of India services nor can they hold any constitutional office in the Government of India. They need prior permission for undertaking mountaineering, missionary activities, research work and to visit restricted areas in India.