NRI stands for Non-Resident Indian. An NRI is an individual who is an Indian citizen by birth or descent and who resides outside India for employment, business, education, or other purposes, and has not resided in India for a substantial period during the preceding financial year.
Determining whether someone is an NRI typically involves looking at factors such as:
- Residential Status: Under Indian tax laws, an individual’s residential status is determined based on the number of days spent in India during a financial year (April 1 to March 31). If an individual stays in India for less than 182 days during a financial year, they are considered a non-resident for tax purposes.
- Passport and Citizenship: An individual holding an Indian passport and citizenship who resides outside India is likely to be an NRI.
- Purpose of Stay: If an individual is living abroad for employment, education, business, or any other purpose, and has not maintained a substantial presence in India during the relevant financial year, they may be considered an NRI.
- Legal Documentation: NRIs often have legal documentation such as visas, work permits, or residency permits from the country where they reside, which can also serve as evidence of their non-resident status.
- Financial and Economic Ties: NRIs may have investments, bank accounts, or assets in India, but their primary residence and economic activities are outside the country.
It’s important to note that the determination of NRI status can have legal and tax implications, and it’s advisable to consult with legal or financial experts for precise guidance.NRI’s may require lower deduction TDS certificate in certain cases. We at ebex consulting can help NRI’s in issuance of such certificates.
