Explore the basic terms and terminology regarding the NRI diaspora and foriegn investments.
A Person of Indian Origin (PIO), a foreign citizen (except a national of Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan, Sri Lanka and Nepal) who at any time held an Indian passport.
NRI typically stands for Non-Resident Indian. It refers to individuals of Indian nationality or origin who live in a foreign country, either temporarily or permanently. The term is often used in the context of the Indian diaspora.
Some NRIs may hold an Overseas Citizenship of India (OCI) status, which provides certain privileges and benefits, such as the ability to travel to India without requiring a visa.
India does not allow dual citizenship, but it does permit overseas citizens to hold an OCI in addition to their foreign citizenship.
A foreign national is an individual who is not a citizen or national of a particular country. This term is broad and can encompass various immigration statuses, including temporary residents, permanent residents, and work visas.
FEMA is a regulatory framework that governs foreign exchange transactions in India. NRIs need to adhere to FEMA regulations when making investments, including real estate transactions.
NRIs often use a Power of Attorney to authorize a representative in India to act on their behalf in property transactions. This is crucial for managing legal and administrative aspects of real estate dealings.
These are charges levied by state governments in India on property transactions.
Some financial institutions in India offer home loans specifically designed for NRIs.
NRIs are subject to capital gains tax in India on the sale of property. The tax implications depend on factors such as the holding period of the property and the profit earned.
NRIs can open NRE accounts to manage their foreign income in Indian currency. This account is crucial for making investments in India, including real estate.
NRIs use NRO accounts to manage income earned in India, such as rental income from real estate. It is also used for transactions in rupees that do not involve repatriation.
