Page 44 - Banking Finance July 2021

ARTICLE

NRI

SIMPLIFIED

W RESIDENT in India is called as Non-Resident years AND 60 days in the financial year. There are a few
ho is an NRI: An Indian citizen who is not
exceptions to it.
Indian (NRI). Now, the question arises as
to what is the rule for being Resident in
1999.
India or Not Resident in India. 2) Foreign Exchange Management Act (FEMA)
You are a Non-Resident Indian (NRI) if you satisfy ANY of
It is defined in two acts i.e., Income Tax Act 1961 & Foreign the following two conditions:
Exchange Management Act (FEMA) 1999. a) An Indian Citizen who resides in India for less than one

182 days during the preceding financial year, OR
1) Income Tax Act 1961:
b) Who has gone out of India or who stays outside India
You are a Resident if you satisfy ANY of the following two
for the purpose of employment, for carrying on business
conditions:
or vocation outside India, or for any other purpose
a) You are in India for 182 days in the financial year, OR
indicating his intention to stay outside India for an
b) You are in India for 365 days in 4 preceding financial
uncertain period.
Income tax liability for an NRI:
About the author Y Any income that is 'earned' in India is taxable for you in

India.
Hitesh Singh
Sr. Manager(faculty) Y Income earned outside of India is not taxable in India.
Union Bank of India
STC Gurugram
We have discussed about Resident and Non-Resident Indian.

44 | 2021 | JULY | BANKING FINANCE