Who are an NRI/PIO?
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 non-Indian earnings are not subject to tax by the Indian government, as long as you have paid tax in the nation where you reside. Local earnings in India (interest, rental income) are still taxable.
• 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 so.
What are the drawbacks?
• You may need permission to withdraw money invested in India.
• You cannot buy farmland or farmhouses.
• You cannot have a government job.
• You cannot be elected to political office.
How do you become an NRI?
No application form is needed. The only official record of being an NRI comes on your annual tax return. This status may change from year to year. If you want to open an NRI bank account, you simply need to inform your bank of your plans.
More NRI Benefits
1. Bank Accounts – The NRI banking sector is very vibrant, particularly as the Indian government started to recognize this large group of people and provided them with numerous facilities and benefits.
2. Insurance Policy- Another benefit that NRIs experience is the fact that they can enjoy tax breaks on their income as long as they enroll in a tax savings fund, pension plan, insurance policy, as well as any other certification. This is because the aforementioned options offer great returns to NRIs and will therefore provide the expected tax breaks.
3. Overseas Real Estate – Non-resident Indians can continue to keep all their real estate outside of India. These types of assets can be rented out as rentals or credited to offshore bank accounts. The properties can then be transferred or sold and the proceeds of the sale credited to offshore bank accounts. The best thing about this is that any expenses related to these assets, such as insurance premiums and maintenance, can be easily settled with the remaining balances abroad.
Who can be a PIO?
“Person of Indian origin” means a foreign national who is not a citizen of Bangladesh, Pakistan or other countries as specified by the Central Government from time to time if;
Yo. He/she at any time held an Indian passport; gold
ii. He/she, either of his/her parents or grandparents or great-grandparents, was born in and was a permanent resident of India, as defined in the Government of India Act, 1935, and in other territories which become part of India thereafter, provided that neither is a citizen of any of the above-mentioned countries (as mentioned above); gold
iii. He/she is the spouse of a citizen of India or a person of Indian origin covered by (I) or (ii) above.
Benefits of a PIO card:-
(i) PIO card holders are visa free to visit India for a period of 15 years from the date of issuance of the PIO card.
(ii) They are exempt from registration in FRRO/FRO if their stay does not exceed 180 days. In case the stay exceeds 180 days, they must register with FRRO/FRO within the next 30 days.
(iii) Enjoy parity with NRIs in economic, financial and educational benefits such as: Acquisition, holding, transfer and disposition of real estate in India except agricultural/plantation properties Admission of children to educational institutions in India under the general category quota for NRIs including college of medicine and engineering, IIT, IIM etc. Availability of various India LIC housing schemes, state government and central government agencies All future benefits that would be exempt for NRIs would also be available to PIO card holders. However, PIOs do not enjoy employment rights in the services of the Government of India nor can they hold any constitutional office in the Government of India. They need prior permission for mountaineering, missionary activities, research work and to visit restricted areas in India.
Leave a Reply