What is the definition of an NRI?
SBNRI Team
answered on 01/03/2023
An NRI or Non Resident Indian is an Indian Citizen living outside India for a minimum of 183 days in 1 financial year for the purpose of employment, business or vocation (occupation for which an individual is trained).
Indian Citizens who have gone out or are staying abroad for some other purpose with an intention to stay outside India for an uncertain period (job or assignments where you don’t know when you will return to India) can also be termed as NRIs.
Other Specifications of an NRI (For people related to government and its associated organisations):
- Citizens of India who are working abroad on assignments for foreign agencies of government like United Nations Organization (UNO) or its affiliates, World Bank, International Monetary Fund (IMF) etc.
- Officials who are deputed outside India on temporary assignments or official postings belonging to Central/State Government or any Public Sector Undertaking
- Officials deputed on Indian Diplomatic Missions abroad are also considered NRIs
Other Definitions
NRI Status Eligibility
In order to become an NRI, there are certain criteria one must fulfill, which are as follows:
1. A citizen of India must stay overseas for 182 days or more in one financial year.
2. If a citizen of India stays in India for less than 365 days in the last 4 years from the year of assessment and less than 60 days during the year being tested for eligibility.
How to Calculate 182 Days for NRI Status
To calculate 182 days for an NRI (Non-Resident Indian), you need to determine their residential status as per the Indian Income Tax Act.
Under the Income Tax Act, an individual’s residential status is categorized into three types – Resident, Non-Resident, and Resident but Not Ordinarily Resident.
To determine the residential status of an NRI, the following criteria are used:
- If an NRI has stayed in India for 182 days or more in a financial year (April 1 to March 31), they will be considered a resident for tax purposes.
- If an NRI has stayed in India for less than 182 days in a financial year, they will be considered a non-resident for tax purposes.
Therefore, to calculate 182 days for an NRI, you need to count the number of days an NRI has stayed in India during a financial year. If the count is equal to or more than 182 days, they will be considered a resident for tax purposes. If the count is less than 182 days, they will be considered a non-resident for tax purposes.
NRI Status Calculator
You can calculate your stay in India and figure out whether you are eligible for the NRI Status or not. To know more about how to calculate your status, click here.
With SBNRI, you can open your bank accounts effortlessly while being abroad in the top banks of India. To open an NRI Bank Account instantly, click the button below.
Related Questions
SBNRI Team
answered on 18/02/2023
PIO or Person of Indian Origin; is a person with foreign citizenship who has an Indian origin. The factors that define the term “Indian Origin” are: 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 […]
SBNRI Team
answered on 25/02/2023
Yes, he will be an NRI for the year as he is staying more than 182 days outside India. Definition of an NRI For further assistance with NRI Banking, Investment, Remittance or Taxation, click on the button below to connect with our expert.
SBNRI Team
answered on 22/03/2020
Refer to the table below to understand about the various types of NRI Accounts: Types of NRI Accounts Factors to consider Non Resident External (NRE) Account Non Resident Ordinary (NRO) Account Foreign Currency Non Resident (FCNR) Account Purpose For income earned outside India For income earned from India (pension, rent etc.) Foreign Currency Investment in […]
SBNRI Team
answered on 24/02/2023
To prove NRI status, one has to submit any of the following documents as proof of residence abroad: Employment Details Student Status Dependent Visa Status, or A copy of Resident Permit of the country where the individual is residing Note: The proof needs to be attested either by the Indian Embassy, Notary or an Indian […]
