Definitions Non Resident Indian (NRI), Person of Indian Origin (PIO) and Overseas Citizen of India (OCI), Person Resident Outside India

The definitions of NRI, PIO, OCI, and Resident outside India under various Indian statue is given hereinbelow.
1. Under FEMA and Regulations thereunder:

  • As per provisions of Foreign Exchange Management Act, 1999 “person” includes:
    • an individual,
    • a Hindu undivided family,
    • a company,
    • a firm,
    • an association of persons or a body of individuals, whether incorporated or not,
    • every artificial juridical person, not falling within any of the preceding sub-clauses,
    • any agency, office or branch owned or controlled by such person

2. As per provisions of the Foreign Exchange Management Act, 1999, “person resident in India” means:

  • 2.1 a person residing in India for more than one hundred and eighty-two days during course of the preceding financial year but does not include:
    • (a) a person who has gone out of India or who stays outside India, in either case –
      • for or on taking up employment outside India, or
      • for carrying on outside India a business or vocation outside India, or
      • for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period;
    • (b) a person who has come to or stays in India, in either case, otherwise than –
      • for or on taking up employment in India, or
      • for carrying on in India a business or vocation in India, or
      • for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period;
  • 2.2 any person or body corporate registered or incorporated in India,
  • 2.3 an office, branch or agency in India owned or controlled by a person resident outside India,
  • 2.4 an office, branch or agency outside India owned or controlled by a person resident in India;
  • 2.5 “person resident outside India” means a person who is not resident in India;

3. As per Foreign Exchange Management (Deposit) Regulations, 2016

  • 3.1 ‘Person of Indian Origin (PIO)’ means a person resident outside India who is a citizen of any country other than Bangladesh or Pakistan or such other country as may be specified by the Central Government, satisfying the following conditions:
    • Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955; or
    • Who belonged to a territory that became part of India after the 15th day of August, 1947; or
    • Who is a child or a grandchild or a great grandchild of a citizen of India or of a person referred to in clause (a) or (b); or
    • Who is a spouse of foreign origin of a citizen of India or spouse of foreign origin of a person referred to in clause (a) or (b) or (c)

    Explanation: for the purpose of this sub-regulation, the expression ‘Person of Indian Origin’ includes an ‘Overseas Citizen of India’ cardholder within the meaning of Section 7(A) of the Citizenship Act, 1955.

  • 3.2 As per Regulation 2(x) of Foreign Exchange Management (Deposit) Regulations, 2016, Non-Resident person means a person resident outside India who is a citizen of India.

4. Overseas Citizen of India Cardholder (OCIs):>

  •        As per Citizenship Act, 1955 of India

    Registration of Overseas Citizen of India Cardholder.―

    The Central Government may, subject to such conditions, restrictions and manner as may be prescribed, on an application made in this behalf, register as an Overseas Citizen of India Cardholder―

    • (a) any person of full age and capacity,―

      • (i) who is a citizen of another country, but was a citizen of India at the time

        of, or at any time after the commencement of the Constitution; or

      • (ii) who is a citizen of another country, but was eligible to become a citizen

        of India at the time of the commencement of the Constitution; or

      • (iii) who is a citizen of another country, but belonged to a territory that

        became part of India after the 15th day of August, 1947; or

      • (iv) who is a child or a grandchild or a great grandchild of such a citizen;

        or

    • (b)  a person, who is a minor child of a person mentioned in clause (a); or
    • (c)  a person, who is a minor child, and whose both parents are citizens of

      India or one of the parents is a citizen of India; or

    • (d)  spouse of foreign origin of a citizen of India or spouse of foreign origin of an Overseas Citizen of India Cardholder registered under section 7A and whose marriage has been registered and subsisted for a continuous period of not less than two years immediately preceding the presentation of the application under this section:

Provided further that no person, who or either of whose parents or grandparents or great grandparents is or had been a citizen of Pakistan, Bangladesh or such other country as the Central Government may, by notification in the Official Gazette, specify, shall be eligible for registration as an Overseas Citizen of India Cardholder under this sub-section.
5.Under Income Tax Act,1961

As Per Provisions of Section 6 of Income Tax Act, 1961

  • (1) An individual is said to be resident in India in any previous year, if he—

    • (a) is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or
    • (b) [***]
    • (c) having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.
  • Explanation 1.—In the case of an individual,—
    • (a)    being a citizen of India, who leaves India in any previous year as a member of the crew of an Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words “sixty days”, occurring therein, the words “one hundred and eighty-two days” had been substituted ;
    • (b)   being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause (e) of section 115C, who, being outside India,  comes on a visit to India in any previous year, the provisions of sub-clause
    • (c)  shall apply in relation to that year as if for the words “sixty days”, occurring therein, the words “one hundred and eighty-two days” had been substituted 6[and in case of the citizen or person of Indian origin having total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year, for the words “sixty days” occurring therein, the words “one hundred and twenty days” had been substituted].
  • Explanation 2.—For the purposes of this clause, in the case of an individual, being a citizen of India and a member of the crew of a foreign bound ship leaving India, the period or periods of stay in India shall, in respect of such voyage, be determined in the manner and subject to such conditions as may be prescribed.

Following clause (1A) shall be inserted after clause (1) of section 6 w.e.f. 1-4-2020 :

  • (1A) Notwithstanding anything contained in clause (1), an individual, being a citizen of India, having total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year shall be deemed to be resident in India in that previous year, if he is not liable to tax in any other country or territory by reason of his domicile or residence or any other criteria of similar nature.
  • (2) A Hindu undivided family, firm or other association of persons is said to be resident in India in any previous year in every case except where during that year the control and management of its affairs is situated wholly outside India.
  • (3) A company is said to be a resident in India in any previous year, if—
    • (i) it is an Indian company; or
    • (ii) its place of effective management, in that year, is in India.

     Explanation.—For the purposes of this clause “place of effective management” means a place where key management and commercial decisions that are necessary for the conduct of business of an entity as a whole are, in substance made.

  • (4) Every other person is said to be resident in India in any previous year in every case, except where during that year the control and management of his affairs is situated wholly outside India.
  • (5) If a person is resident in India in a previous year relevant to an assessment year in respect of any source of income, he shall be deemed to be resident in India in the previous year relevant to the assessment year in respect of each of his other sources of income.
  • (6) A person is said to be “not ordinarily resident” in India in any previous year if such person is—
    • (a) an individual who has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less; or
    • (b) a Hindu undivided family whose manager has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less 7[; or
    • (c) a citizen of India, or a person of Indian origin, having total income, other than the income from foreign sources, exceeding fifteen lakh rupees during the previous year, as referred to in clause (b) of Explanation 1 to clause (1), who has been in India for a period or periods amounting in all to one hundred and twenty days or more but less than one hundred and eighty-two days; or
    • (d) a citizen of India who is deemed to be resident in India under clause (1A).

Explanation.—For the purposes of this section, the expression “income from foreign sources” means income which accrues or arises outside India (except income derived from a business controlled in or a profession set up in India)].