Who is a Non resident Indian NRI?

An NRI is a person resident outside India who is a citizen of India or is a person
of Indian origin.

Under the Foreign Exchange Management Act (FEMA), generally, a person is
resident outside India if he is in India for less than 182 days during the course of
the preceding financial year and also includes any person who stays abroad:
 For the purposes of carrying out employment or any business or vocation;
 Under circumstances indicating an intention to stay outside India for an
uncertain duration;
 Any Indian citizen deputed outside India for a temporary period in
connection with employment
 For education

How do I know if I qualify as a Non-Resident Indian?

If you have gone out of India for any of the following purposes, you qualify to
open a Non-Resident Account
 Taking up employment
 Business or vacation
 Any other purpose, in such circumstances as would indicate his intention
to stay outside India for an uncertain period
 Indian citizens working abroad on assignments with foreign
Governments/Government agencies or international/regional agencies like
the UNO, IMF, World Bank etc.
 Officials of Central and State governments and Public Sector
Undertakings deputed abroad on temporary assignments or posted to a
Branch / Office (including diplomatic missions) abroad
 Indians settled abroad permanently
 Indians gone abroad on immigration
 Crew-members of Indian nationality or Indian origin employed by foreign
airlines / shipping companies, if they are based at foreign ports and reside
abroad
Non-Resident Indians become Indian residents only when they come back to
India for employment or for carrying-on any business in India or vocation or for
any other purpose indicating an indefinite period of stay in India.
They are not regarded as Resident Indians during their short visits to India on
holiday, leave etc.

Who is a Person of Indian Origin PIO?

You are a Person of Indian origin [PIO] if you are a citizen of a foreign country
(other than a citizen of Bangladesh or Pakistan) and:
 You have at any time held an Indian passport OR
 You or either of your parents or any of your grandparents were citizens of
India by virtue of the Constitution of India or the Citizenship Act, 1955 OR
 You are the spouse of an Indian citizen or of a person of Indian origin
(other than of Pakistan or Bangladesh )

What are the types of bank accounts available to NRIs?
Non-Resident External [NRE] Rupee savings account
Your funds in NRE savings accounts are held in convertible rupees – principle
and interest are fully repatriable. Interest income is fully exempt from tax in India.
The savings account can be opened jointly with a Non-Resident individual.

Non-Resident External [NRE] Rupee fixed deposit
Fixed deposit in Indian rupees where the principle and interest are fully
repatriable. All interest earned is fully exempt from tax in India. The account can
also be opened jointly with a non-resident.
Non-Resident Ordinary [NRO] Rupee savings account
Your funds in Non Resident Ordinary (NRO) savings account are held in India, in
Indian rupees. The NRO account can be funded through NRI income in India.
Only the interest in an NRO account is repatriable. Interest income on this
account is liable for Indian Income Taxes. Non-Resident Ordinary [NRO] Rupee
fixed account
Fixed deposit in Indian rupees where the earnings in India can be deposited. The
interest is repatriable [after payment of tax].
Foreign current Non-residents [FCNR] deposit
The FCNR Deposit is a fully repatriable foreign currency deposit available in
major currencies: US Dollars, Pound Sterling, Euros, Australian dollars and
Canadian dollars.
Your funds in FCNR Deposits are maintained in foreign currency and are fully
repatriable, including the interest you earn. All interest earned is fully exempt
from tax in India.
Can I open these accounts in any convertible currency?
Yes, you can remit funds for opening the account in any convertible currency.
The NRO / NRE accounts are maintained in rupees and the funds remitted will
thus be converted into India rupees at the spot exchange rate.
Deposit can be maintained in the currency of your choice i.e. USD, GBP, EUR,
AUD and CAD.

Can an NRI invest in Mutual Funds?
Yes, an NRI can invest in Mutual Funds without any prior permission from RBI.
The offer document should clearly state the NRIs could invest in the scheme.
Please contact us and we will be glad to assist you.

How do I invest in Mutual Funds?

You can invest by issuing a cheque against your NRO/NRE Accounts. If you
invest from funds in your NRE/FCNR Accounts then you will be able to repatriate
income on Mutual Fund earnings abroad. Please contact us and we will be glad
to assist you.
We at RM R Shah and Company provide Non-Resident Taxation sevices :-
 Obtaining Permanent Account Number
 Tax Advisory Services and filing of e-Tax returns
 Setting up a Branch office/ Liaison office/ Project office in India
 Banking and Remittances
 Investment advisory support