Know The Meaning Of NRI

Rules as per Income Tax Act for NRIs
Examples of NRIs as per the above Rules
Details of NRI Income That Is Taxable
Conclusion

An Non Resident Indian (NRI) is an Indian Citizen who resides in India for less than one hundred & eighty two days during the course of the preceding financial year, who has gone out of India or who stays outside India for the purpose of employment, who has gone out of India or who stays outside India for carrying on business or vocation outside India, or who has gone out of India or who stays outside India for any other purpose indicating his intention to stay outside India for an uncertain period.

Rules as per Income Tax Act for NRIs

As per the Income Tax Act, an individual is considered an NRI in the following cases.

The person has not resided in India continuously for 182 days during a financial year.
The person has not stayed in India for 60 days in the financial year and has not resided in India continuously for 365 days in the last four years.
A person who has migrated out of India for employment
A person who is residing abroad and running a business establishment there
A person staying out of India for an indefinite period for any other purpose and has indicated the purpose of the stay

Examples of NRIs as per the above Rules

Employees of the Public Sector posted abroad.
Representatives of Central/State Government living abroad
Indian Citizens working abroad in institutions like World Bank, International Monetary Fund, UNO etc
Indian citizens abroad for further studies have jobs or businesses abroad.

Details of NRI Income That Is Taxable

Capitals gains on the sale of property in India
Remuneration is received for services rendered in India, termed global income.
Income by way of rent from property owned in India.
Interest on Fixed Deposit and Savings Bank Account.

Conclusion

Many NRI accounts exist and can be used for earning decent returns. In the article, we discussed what is the meaning of NRI and the various details around the meaning of NRI.

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Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.