NRI (Non Resident Indian)

The definition of an NRI varies according to the two different acts: FEMA and the IT Act. The NRI full form is Non-Resident Indian.

The definition of NRI as per the Foreign Exchange Management Act: An NRI is a foreign national of Indian origin who is residing outside of India (except Bhutan and Nepal) for any specific reason that implies the intention of living abroad indefinitely. Those reasons can be employment, business, or study-related.

The definition of NRI as per the Income Tax Act: This act says that an NRI is a person who is a citizen of India but chooses to stay abroad for tax purposes. 

Eligibility Criteria for NRI Status

If you want to become an NRI (Non-Resident Indian), then as an Indian, you need to meet one of the requirements listed below: 

• To become an NRI, the person has to stay in a foreign country for at least 183 days in a financial year.
• To qualify as a Non-Resident Indian (NRI), an individual must stay in India for less than 365 days during the four years preceding the current year and for less than 60 days in the current year. 

If you want to determine your NRI status for tax purposes, then just check if you are meeting any one of the above requirements.

Types of NRIs

There are mainly three types of Non-Resident Indians. They are classified on the basis of the reason for their stay in foreign countries. They are: 

1. Employees who work in the public sector as central or state government representatives are living overseas.
2. Indian citizens who work abroad in international institutions such as the United Nations, the International Monetary Fund, the World Bank, and so on. 
3. Residents of India living abroad due to jobs, education, business, or just enjoying vacations.