By acting as money and a means of payment independent of any one person, group, or entity, a cryptocurrency like bitcoin eliminates the need for third parties to get involved in financial transactions. It is available for purchase on numerous platforms and is given to blockchain miners as compensation for their efforts in verifying transactions.
Being a Non-Resident Indian (NRI) is tough. Time and again, you come across different definitions that tend to confuse you. Also, there are amendments and interpretations that can make it all a bit more complex. So, in this category find the definitions of the basic terms that you will come across in the overall understanding of being an NRI.
NRI as per FEMA
Non-Resident Indian (NRI) as per FEMA or Foreign Exchange Management Act is a person who has gone out of India or stays outside the country for the purpose of employment, business, vocation (occupation for which an individual is trained) or any other circumstances indicating his/her intention to stay outside India for an uncertain period of time (job or assignments where you don’t know when you will return to India).
“Non-Resident Indian” is also covered under the regulations of FEMA as “A person residing outside India who is either a citizen of India or a Person of Indian Origin (PIO)
RBI has also mentioned that students studying abroad will also be treated as NRI under FEMA and will be eligible for foreign investments and NRE/FCNR accounts.
According to Income Tax regulations, a citizen will be a resident of India in the previous year, if:
- He/she is in India for at least 182 days in that year, OR
- If the individual was not in India for at least 182 days in the previous year but he/she was in India for at least 365 days during the last 4 years to that year and at least 60 days during that year
Case 1: Consider you were in India for 207 days in 2019, then you are a resident of India for 2019.
Case 2: Say, you were in India for 70 days in 2019, then you fail the first criteria! But you were in India during the entire time span of 2014-2018. Then you are a resident of India in spite of not being in the country for at least 182 days in 2019.
The individuals not satisfying the two cases mentioned above will be treated as Non-Resident Indians (NRIs) according to the Income Tax Regulations.
- A person who was born in India
- A person who at any time, held an Indian Passport or
- An individual who is either a citizen of India or whose father/mother/grandfather/grandmother was/were a citizen(s) of India
- The spouse of an Indian Citizen or a PIO
Foreign Citizenship in case of a Person of Indian Origin will not include citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan.
PIO is associated with the citizenship of an individual and not his/her residence.
2. OCI: OCI refers to Overseas Citizen of India which can be simply understood as the status given to people with a foreign citizenship who are granted with certain rights and freedoms that the citizens of India and NRIs enjoy except the following rights: voting rights, candidature in various houses of government, constitutional posts such as President, Supreme Court Judge etc. government employment, acquisition of agricultural or plantation properties.
OCIs or Overseas Citizens of India are entitled to multiple benefits under the OCI Card Scheme (Mandatory scheme for OCIs to enroll for an OCI card to enable entry in the country with or without their foreign passports); the eligibility criteria are as follows:
- A former Indian citizen (on or after January 16, 1950)
- A person belonging to any part merged to India after August 15, 1947
- A person whose parents, grandparents or great-grandparents are/were Indian citizens
- A person married to an Indian Citizen or an existing OCI for at least 2 years
OCIs have the permission to work indefinitely in India. The increased demand for dual citizenship (holding passports of two different countries) in India resulted in the introduction of the OCI Card. Citizens of countries allowing dual citizenship can apply for an OCI card in India.
- Multiple entry; Lifelong visa to visit India
- Similar benefits to NRIs in educational, financial and economic fields
- The OCIs will be treated in the same way as Indian nationals considering the domestic air fare tariffs
- Applications submitted from outside India: $275 or equivalent local currency
- Applications submitted in India: Rs.15,000/-
Application for OCI Card is available on https://ociservices.gov.in/
On 9th January 2015, PIO Card Scheme (issuing of Cards to Persons of Indian Origin to allow visa-free travel to India) was withdrawn by the Government of India and has been merged with the OCI Card Scheme.
The full form of NOC is No Objection Certificate. NOC is a type of written legal document issued by a government, organization, institute, or even an individual in certain cases. A NOC is issued to state that the issuer has no objection to the details mentioned in the document. The No Objection Certificate is required at most government-based departments for legal purposes.
Immigrant, expat and migrant are all words used to describe people who leave their homes or country for another place to live or work, either temporarily or permanently. Undoubtedly certain groups and demographics are referred to and perceived as much more privileged than others. Country of birth seems to play a big part in how the group or demographic is perceived. There is some confusion between the various terms used. In this piece - Immigrant vs Expat - we will proceed to clarify subtle nuances of the meaning of each word.
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In Fed rate hike news, the Federal Reserve has increased its benchmark interest rate by 0.75 percentage points, the highest since 1994. Rate increases that are too aggressive will reduce demand and slow the Indian economy. India should strengthen its macro-fundamentals and refrain from making snap decisions regarding policy in this uncertain situation. In this article, we discuss the Fed rate hike impact on India.
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