What are the benefits of being an NRI?
• You can get special bank accounts from Indian banks.
• You can continue to own land and property in India.
• Your earnings outside of India are not taxed by the Indian government, as long as you have paid taxes in the nation where you reside. Local earnings in India (interest, rental income) are still taxable.
• There is a special quota of places in Indian universities reserved for NRIs.
• You can still vote, but you have to be in India to do so.
What are the drawbacks?
• You may need permission to withdraw money invested in India.
• You cannot buy farmland or country houses.
• You cannot have a government job.
• You cannot be elected to political office.
How do you become an NRI?
No application form is needed. The only official record of being an NRI comes on your annual tax return. This status can change from year to year. If you want to open an NRI bank account, you simply need to inform your bank of your plans.
More benefits of NRI
1. Bank Accounts: NRI’s banking sector is very dynamic, particularly as the government of India began to recognize this large group of people and provide them with numerous facilities and benefits.
2. Insurance Policy – Another benefit NRIs experience is the fact that they can enjoy tax breaks on their income as long as they sign up for a tax savings fund, pension plan, insurance policy, and any other certification. This is because the aforementioned options offer great returns to NRIs and will therefore provide the expected tax breaks.
3. Real estate abroad: Non-resident Indians can continue to keep all their real estate outside of India. These types of assets can be rented as rentals or credited to bank accounts abroad. Properties can be transferred or sold and the proceeds of the sale are credited to bank accounts abroad. The great thing about this is that the expenses related to these assets, such as insurance premiums and maintenance, can be easily settled with the remaining balances abroad.
Who can be a PIO?
“Person of Indian origin” means a foreign citizen who is not a citizen of Bangladesh, Pakistan or other countries, as specified by the Central Government from time to time if;
I. He / she had an Indian passport at all times; gold
ii. He / she, whether of his / her parents or grandparents or great-grandparents, was born and was a permanent resident in India as defined in the Government of India Act 1935 and other territories to become part of India from then, as long as neither of them is a citizen of any of the aforementioned countries (as mentioned above); gold
iii. You are the spouse of a citizen of India or a person of Indian origin covered in (I) or (ii) above.
Benefits of a PIO card: –
(i) PIO card holders do not need a visa to visit India for a period of 15 years from the date of issuance of the PIO card.
(ii) They are exempt from registration in FRRO / FRO if their stay does not exceed 180 days. In the event that the stay exceeds 180 days, they must register with FRRO / FRO within the next 30 days.
(iii) They enjoy parity with the NRIs in economic, financial and educational benefits such as: – Acquisition, possession, transfer and disposal of real estate in India, except agricultural / plantation properties Admission of children to educational institutions in India under a quota of general category for NRI, including Faculty of Medicine and Engineering, IIT, IIM, etc. Leveraging various housing schemes from India’s LIC, state government and central government agencies All future benefits that would be exempt for NRIs would also be available to PIO card holders. However, PIOs do not have employment rights in the Government of India services nor can they hold any constitutional office in the Government of India. They need prior permission to do mountaineering, missionary activities, research work and to visit restricted areas in India.