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OCI Card Advantages for NRIs Returning to India
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Applying for an OCI card for the NRIs can be a good choice, as it provides many benefits to the Returning NRIs in India. Whether it is an investment opportunity, purchasing or selling property, or opening bank accounts, you can access all these numerous advantages of the OCI card.
An OCI card helps a foreign national of Indian origin to stay or work in India for an indefinite period without reporting to any local police authority.
In this blog, we will see what the OCI card advantages are for returning NRIs in detail.
Quick Overview: OCI Advantages for Returning NRIs
- An OCI card provides lifelong free access to the NRIs.
- You can live in India without reporting the duration of stay to any local police or authority.
- OCI cardholders need to renew their OCI card once they turn 20 years and after turning 50 years.
- You will get the same fares as the Indian citizens in domestic fares, national parks, museums, monuments, etc.
- Through the DTAA, you can also avoid paying double taxes.
Advantages of OCI card for Returning NRIs
One of the big benefits of the OCI card for NRI returning to India are it provides you with hassle-free multiple visa-free entries in India.
An NRI can go to India for various purposes such as tourism, business, Family, or work and stay as many days as he or she wants without reporting the duration of stay.
There are many OCI card advantages for returning NRIs, which are mentioned below.
1. Lifetime Visa-Free Access
The main advantage of the OCI card for returning NRIs is that they will get a free multiple-entry visa for life in India.
It eliminates the need for further visa applications, embassy visits, and the requirement for stamps at immigration.
As for the smooth and easy travel, the Indian government has introduced a fast-track immigration program for which eight new major Indian airports in Mumbai, Delhi, Chennai, Bengaluru, etc. Additionally, for more frequent travel, OCI cardholders can use e-gates for instant clearance.
2. Purchase Commercial or Residential Property
An OCI cardholder can easily buy residential or commercial land in India, and an NRI returning to India can also enjoy this OCI card benefit.
However, an OCI cardholder is not allowed to purchase any plantation or agricultural property in India. This rule is made by the Indian authorities to protect the agricultural economy of India.
Through the NRE account or NRO account, an NRI can easily purchase commercial or residential property in India. Cash transactions are not allowed to buy land in India.
For the funds, an NRI can repatriate funds up to 1 million USD in a financial year, along with the applicable taxes.
3. Unlock Banking and Investment Opportunity
Through an OCI card, an NRI returning to India can unlock their full banking and investment access. It includes options like opening an NRE or NRO bank account, a demat account, or fixed deposits.
Having an OCI card, an NRI can easily invest in mutual funds, Indian stock markets, and GIFT city funds, which allow tax-free returns on US-denominated deposits.
You can also use your OCI card as proof of identity for various financial and identification purposes, such as for PAN Card applications or opening bank accounts.
4. Work in India Without the Need for a Visa
An OCI cardholder can work hassle-free in India without any need of work permit. It unlocks a big opportunity for the returning NRIs to India for getting work or employment in India.
However, you will not get any jobs or work opportunities in the defence or military positions. OCI cardholders can work in the private sector.
This also allows NRIs to stay in India rather than working part-time in foreign countries.
Understanding RNOR status also helps the NRIs to get the tax benefits up to three years after returning to India.
5. Educational and Domestic Airfares Benefits
An OCI card also provides a big advantage to children to get admission in Indian educational institutions. For this, you will need to pay the same fees as the Indian residents for different courses, such as Medical or engineering.
Additionally, you will also get the same domestic fares as the Indian residents.
To get entry in the national parks, museums, and monuments, OCI cardholders need to pay the same fees as Indian citizens.
6. No Need for Police Registration
An OCI cardholder can stay, live, or work in India for a lifetime without the need to report to any local police or authority. On the other hand, foreign nationals planning to visit India must register with the Foreigners Regional Registration Office (FRRO) to stay for a long time in India.
It allows adults, senior citizens, and individuals to visit India without the need for an extension of the duration of stay.
7. Parity in DTAA
All OCI cardholders can avail the benefits of the Double Taxation Avoidance Agreement (DTAA) between India and the country of residence. This allows them to pay tax only in one country. For the UAE-based NRIs, it is called the better tax treatment on the income earned in India.
For the NRIs, it's also crucial to understand the tax rules on the Investment. As the interest made by the NRE account in India will remain tax-free, and on the NRO account, you need to pay tax on the investment.
Important Points to Know for NRI OCI Holders
An NRI who is returning to India must know these points before getting an OCI card, which are:
- Having an OCI card does not mean you have citizenship in India.
- OCI cardholders cannot vote in India or participate in elections.
- You cannot hold a government office in India.
- OCI cardholders must have a valid foreign passport.
- You will need to get a special permit to visit restricted areas in India.
- To change your address in India, you will need to inform the FRRO in India.
- All OCI cardholders need to update their OCI card when they turn 20 years old and receive their new passport, and after turning 50 years old.
Final Thoughts
An OCI card provides various advantages to the returning NRIs, such as visa-free entry, indefinite time to stay, live, or work in India, the same fares as an Indian citizen for entry in national parks, museums, domestic fares, etc.
However, an NRI needs to understand all the tax complications upon returning to India. For assistance, you can take help from the Visament website, which provides Indian consular services for the NRIs. We have years of experienced agents who will help them in filing ITRs and simplifying OCI applications.
Frequently Asked Questions
Yes, you can stay permanently in India with an OCI card, as it provides a lifelong visa to its holders and allows multiple entries along with unlimited stay.
Yes, it is mandatory to renew your OCI card after you turn 50, and there is no need to renew it each time you get a new passport after that age.
Your OCI card remains valid even if your passport expires. You are required to upload the details of your new passport and recent photos within three months of receiving your new passport.
To update your OCI with a new passport, you can upload a copy of your passport and a recent photo by visiting the OCI miscellaneous services portal. This is a mandatory step for applicants who are under 20 and over 50.
Yes, OCI cardholders get the agricultural land ownership from their family. However, an OCI cardholder cannot purchase an agricultural or plantation in India, but they can get land inherited from their family.
No, it is not mandatory to renew your OCI card every time. You need to update your OCI card at the time of turning 20 years old, when you get a new passport, or at the time of turning 50 years old.
To get an Indian passport, you need to surrender your foreign citizenship and go through the naturalisation process, along with all the residency requirements and other conditions.
Yes, your foreign-born spouse can get an OCI card if you have a valid marriage certificate and you have been married for a continuous two years. For the spouse-based OCI application, you may need to give a personal interview at the Indian embassy or consulate.
