• Non Resident & Foreigner [NRI]

  • An Indian abroad is known as Non-Resident Indian (NRI). The NRI status is legally defined under the  Foreign Exchange Management Act, 1999 and the Income Tax Act, 1961 [FEMA] for applicability of respective laws.

    NON-RESIDENTS UNDER FEMA,1999

    The residential status of a person leaving India will be determined us under- If a person leaves India for the purpose of employment, business or for any other purpose that indicates his intention to stay outside India for an uncertain period; then he becomes a non resident from the day he leaves India for such purpose.

    The residential status of a person returning to India will be determined us under- If a person comes to India for the purpose of employment, business or for any other purpose that indicates his intention to stay in India for an uncertain period ; then he becomes a resident from the day he comes to India for such purpose.

    In the definition under FEMA, 1999, stay for a period of 182 days is also stated. 

    The Term NRI, Generally, means a non-resident who is either an Indian Citizen residing outside India and includes Foreign Citizen of Indian origin residing outside India

    FEMA defines a person of Indian Origin (PIO) as a person, being a citizen of any country (a) who at any time held an Indian Passport or (b) a person who himself or either of his parents or any of his grand parents were citizens of India by virtue of the Constitution of India or the Citizenship Act, 1955, or (c) spouse of an Indian citizen or (d) spouse of a person covered under (a) or (b) above. However, the citizens of Bangladesh, Pakistan, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan are not considered as PIO even if they satisfy the above conditions under FEMA for different purposes under different regulations.

    NON - RESIDENT STATUS UNDER THE INCOME TAX / WEALTH TAX ACT

    The term non-resident is negatively defined under section 6 of the Income-tax Act. An individual who is not a resident under the Income-tax Act is a non-resident (Generally termed as NRI). Thus, one should know the definition of a resident and if he is not a resident then he is a non-resident. The status of a person as a resident or non-resident depends on his period of stay in India. The period of stay is counted in number of days for each financial year beginning from 1st April to 31st March (known as previous year under the Income-tax Act). The definition is explained in simple terms as under.

    If an individual who satisfies following twin conditions of section 6 of the Income-tax Act, then he becomes a Non-Resident- (i) If he is not in India for 182 days or more during the relevant previous year then he is a non-resident.- (ii) If he is not in India for 60 days or more during the previous year and he is not in India for 365 days or more during the 4 years prior to the previous year then he is a non-resident. In the case of an individual on visit to India or a member of the crew of an Indian ship or a person leaving India for employment outside India, the requirement of stay in India of 60 days in condition is extended to 182 days.

    RESIDENT BUT NOT ORDINARILY RESIDENT (RNOR)

    A NRI who has returned to India for good is covered under the provisions of section 6(6) of the Income-tax Act. He is given a special status of RESIDENT BUT NOT ORDINARILY RESIDENT (RNOR) if he satisfies one of the following conditions:- (i) If he is not a resident, as per the above provisions, for at least 9 out of 10 previous years prior to the previous year under consideration, he is RNOR- (ii) If his stay in India during the 7 previous year prior to the previous year under consideration should not be 730 days or more, he is RNOR. An individual who is non-resident for 9 consecutive years, shall remain RNOR for 2 subsequent years and as such his foreign income is not taxable in India while his status is that of RNOR. The status of RNOR renders certain income of such individual non-taxable as explained in Tax liability of NRIs.

    A person who is returning to India after 9 years of stay outside India (and who was non-resident for each of the 9 years under the Income Tax Act, 1961), shall remain RNOR for a period of two years only.

    Hello Counsel has its own in-house experienced and capable Legal Team to advise its Non-Resident & Foreigner Clients on feasible India entry options, tax issues in respect of cross-border transactions, tax efficient structuring of strategic foreign investment, choice of financial instruments, repatriation strategies, tax advice in respect of private equity funds, Indian sub-advisory offices and efficient use of international tax treaties. We also assist our clients in addressing transfer pricing issues in case of cross border transactions with related parties.

    Hello Counsel further undertakes Matrimonial & Family matters concerning Non Residents & Foreigners. For convenience sake we have categorised issues pertaining to the Non Residents & Foreigners in the following categories.

    To know more, go on clicking on the following links  

    Courts & Fora- Civil & Criminal: Corporate, Business, Commercial, & Matrimonial 

    [In Hierarchical Order]

    • Supreme Court Of India
    • High Courts Of Various States
    • District & Session Judges [D&SJ]
    • Family Courts
    • Metropolitan Magistrates/ Civil Judges
    • Senior Civil Judges 
    • Civil Judges
    • Mediators & Concilliators.

    Concerned Courts & Fora: Corporate, Business & Commmercial  

    • Advertising Standards Council of India (ASCI)
    • Arbitration Tribunal
    • Anti-Dumping Authorities: Directorate General of Anti dumping and Allied Duties (DGAD) [“Designated Authority”] 
    • Board For Industrial & Financial Reconstruction [BIFR] & Appellate Authority for Industrial & Financial Reconstruction [AAIFR]: Under SICA
    • Commercial Courts, Commercial Division and Commercial Appellate Division:- In the High Courts of various States, particularly the High Courts of Delhi, Bombay, Calcutta and Madras, where the Original jurisdiction above a certain value lies in High Court.- Appeal lies from the orders passed by tribunals like Competition Appellate Tribunal, Debt Recovery Appellate Tribunal, Intellectual Property Appellate Board, Company Law Board, National Company Law Tribunal, Securities Appellate Tribunal and Telecom Dispute Settlement and Appellate Tribunal, Etc 
    • Company Law Board [CLB]- For matters of Oppression and mismanagement; Winding up, etc.
    • Competition Commission Of India [CCI] & Competition Appellate Tribunal
    • Confederation of Indian Industries (CII)
    • Consumer Protection Fora- National Consumer Disputes Redressal Commission (NCDRC); State Consumer Disputes Redressal Commission (SCDRC) & District Consumer Disputes Redressal Forum (DCDRF).
    • Construction Industry Development Council (CIDC)
    • Central Board of Direct Taxes [CBDT]
    • Commissioner of Income-tax (Appeals)
    • Central Board of Excise and Customs (CBEC)
    • Customs, Excise and Service Tax Appellate Tribunal (CESTAT)
    • Debt Recovery Tribunal [DRT] & Debt Recovery Appellate Tribunal [DRAT]
    • Director General of Foreign Trade (DGFT)
    • Department of Industrial Policy & Promotion (DIPP)
    • Electricity Regulatory Authorities & Appellate Authorities: Central Electricity Regulatory Commission [CERC]
    • Federation of Indian Chambers of Commerce and Industry (FICCI)
    • Food Corporation Of India [FCI]
    • Food Safety & Drugs Administration [FSDA]
    • Food Safety & Standard Authority Of India [FSSAI]
    • Foreign Investment Promotion Board [FIPB]
    • Income-Tax Appellate Tribunal (ITAT)
    • Institute of Cost Accountants of India
    • Institute of Chartered Accountants of India
    • Institute of Company Secretaries of India
    • Intellectual Property Appellate Board 
    • Labour & Industrial Dispute Litigation Fora: Labour Court; Labour Tribunal; EPF Appellate Tribunal
    • Mediators & Concilliators.
    • Monopolistic and Restrictive Trade Practices [MRTP]
    • National Green Tribunal [NGT]
    • National Company Law Tribunal [NCLT] & National Company Law Appellate Tribunal [NCLAT]- Constitution of the said Tribunals already in the pipeline, though they are yet to get functional. Hon’ble Supreme Court has already directed the Union Govt. to constitute them without any further delay, vide its order dated:14.05.15, as passed in "Madras Bar Association Versus Union Of India". 
    • National Regulatory Authority of India [NRAI] 
    • Reserve Bank Of India [RBI]
    • Secretariat for Industrial Assistance (SIA)
    • Securities & Exchange Board Of India [SEBI] [The Board To Protect The Interests Of Investors In Securities And To Promote The Development Of, And To Regulate, The Securities Market].
    • Securities Appellate Tribunal
    • Telecom Dispute Settlement and Appellate Tribunal

    Other Related Fora: Matrimonial

    Bare Act: Legislations Governing The Affairs Of Non Resident & Foreigner

    Judgments: Non Resident & Foreigner

    Kindly CLICK HERE or e-mail us at office@hellocounsel.com if you are facing any Legal Issue and want to have Legal Consultations with the empanelled Lawyers at Hello Counsel.

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