OCI Card Advantages for Returning NRIs

Getting an OCI card can be very beneficial for NRIs, especially for those who are planning to return to India. It makes investing, buying property, and savings in India very easy. This card helps the NRIs to remove friction from their personal and financial lives. An OCI card provides multiple entries to NRIs, and it serves as a lifelong visa. The NRIs can get an unlimited stay in India, and they can also work here without any permit. There are many advantages of OCI cards apart from those that we have discussed in this piece of content.

The concept of OCI cards was introduced in 2005. In this blog, we have explained the OCI card advantages for returning NRIs and how it can help them in making the connection between both countries. We have also mentioned a few of the limitations of OCI cards that you can read along. 

OCI Card Advantages 

Many OCI card advantages are given to its holders in India, and they can enjoy its benefits during their stay. Here is the list of these benefits: 

1. Lifelong Visa without Renewal needs

This is considered the biggest advantage of the OCI card. This card provides OCI multiple entries and a lifelong visa to India. You don't have to apply for the visas anymore. You can just directly book your flight and visit India. There will be no hassles of embassy visits. You don't have to go through the anxiety at immigration time because of the expired stamps. 

You can come to India for any purpose, such as business, family, tourism, or medical needs, and stay here as long as you want. You can leave whenever nd return. You can also extend your stay without informing the authorities. The Fast Track Immigration Program is also now operating in eight of the major Indian airports. 

The OCI Cardholders can get quicker clearance by using these e-gates, and get clearance. These major airports include Mumbai, Delhi, Bengaluru, Chennai, etc. There is no need to renew them; hence, you can save a lot of time and money with an OCI card. 

2. Buy Commercial and Residential Property

The OCI cardholders can purchase an unlimited number of residential and commercial properties in India without any restrictions. They can enjoy the same benefits as NRIs. There are a few restrictions on them, such as they cannot buy farmhouses, agricultural land, or plantation properties. This rule of restrictions helps to protect the agricultural economy of India.

For funding purposes, you can use the NRI accounts, such as NRE and NRO accounts. These transfers must be completed through the proper banking channels. For property registration, cash transactions are not permitted. When you sell something, the proceeds can be added to your NRO accounts. 

The limit for the repatriation is up to USD 1 million in a financial year after paying all the applicable taxes. If you plan to sell the property, then understand the implications of capital gains tax before you proceed. 

3. Full Access to Investment and Banking

The OCI cardholders are given the same bank privileges as NRIs. They can also open NRE, NRO accounts, demat accounts, and fixed deposit accounts. It provides them access to mutual funds, NRI fixed deposits, and the Indian stock markets. As OCIs, they can also invest in the GIFT city funds, as it offers many benefits to them, including tax-free returns on USD-denominated deposits. 

The OCI card can be used as a valid identity proof for them in applications for bank account opening and PAN card applications. It can massively decrease the paperwork for them. You can compare the FD rates across all the banks and then choose the best one for your FCNR account. 

4. No Work Visa Required

For OCI cardholders, there is no need for a work permit to work in India. They can work indefinitely without the need for any work visa. This can be a very big advantage for those NRIs who are planning to return to India or are taking the opportunities here for work. They can get employment in the private sector, as it is fully available to them.

They only have to face certain restrictions in a few sectors, such as government jobs and a few security or military jobs. This advantage works best for those NRIs who eventually want to return to India; they can work here part-time while maintaining their overseas residence. 

Tip: The returning NRIs should know the details about the RNOR status period, as it can provide them with many tax benefits for up to three years after their return.

5. Domestic Airfares and Educational Benefits

The OCIs are given the same benefits as the Indian residents on domestic airfares. They don't have to pay the inflated prices meant for foreigners for the domestic flights in India. The entry fees in monuments, national parks, museums, and other sites are also similar for residents. They help in saving a lot of money during your family visits to India.

The children of OCI cardholders can easily get admissions in Indian educational institutions, and their fees are also similar to those of Indian residents for most of the courses, including engineering and medical. They don't have to pay the extra amount of education fees.

6. No Requirements of Police Registration

As per the regulations, all foreign nationals have to inform the Foreigners Regional Registration Office (FRRO) about their extended stays in India. The OCI holders don't have to fulfill these requirements, as they can stay as long as they want in India.

The OCI cardholders can stay for any duration in India without reporting it to the authorities. This freedom makes their extended visits much easier. They can now enjoy their stay and manage their work, such as caring for elderly parents, exploring the investment return options, managing properties, etc.

7. DTAA Benefits

It is one of the best tax-related benefits provided to OCIs. The OCI cardholders can claim benefits under the DTAA (Double Taxation Avoidance Agreement) signed between Indian and their residence country. NRIs who are based in the UAE can get better tax treatment on their Indian Income.

It is very necessary to understand the tax rules for all your investments. The interest earned from NRE accounts is exempt from tax in India, while the NRO interest income is taxable. To fill out your ITRs correctly, you need to make sure that you claim all your deductions and exemptions.

Limitations for OCI Card Holders 

Apart from so many benefits that OCI cardholders enjoy, there are a few limitations that they face while staying in India. Here are a few of them: 

• The cardholders are not allowed to vote in Indian elections or hold public offices, as they are not citizens.
• They cannot get government employment in India.
• The OCI card should always be used with a valid foreign passport by NRIs.
• To visit specific restricted regions, the OCIs have to obtain a Protected Area Permit as per recent regulations.
• You must inform the Foreigners Regional Registration Officer (FRRO) if you are planning to change your tour address or occupation during your stay in India. 
• You need to update your OCI card when you renew your passport after the age of 20 and 50. 

Why Choose Visament?

The OCI card is very necessary as it helps you maintain your life in both countries. It helps in protecting your connection with your home country while you build your future life in a foreign country. From getting OCI cards to opening the NRI bank accounts, each process requires an in-depth understanding of them; otherwise, it can lead to rejection. You can seek expert advice from the professionals at Visament. 

We have a team of professionals who have been working in this field for many years and have a combined experience of 30+ years. They can fill out your applications error-free and provide you the fast approvals. You can get customer assistance from our website 24/7 and get your documents carefully reviewed before submission. Whichever service you choose from our platform, you will have to pay a very affordable price for it.