Updated : May 19, 2024NRI and PIO Investment in India
As per India’s Foreign Exchange Management Act 1999, NRI refers to an Indian citizen or foreign national of an Indian origin residing outside India for employment, for any business activity or for vocation in circumstances for an unspecified period. Moreover, if an individual stays out of India for more than 182 days during that particular financial year then he/she will be considered as NRI.
On the other side, an individual who is not the citizen of India, but is deemed to be of Indian origin, in case he is not a citizen of Bangladesh or Pakistan, if he/she at any time is held with an Indian passport or he/she or either his parents or grandparents were Indian citizens by virtue of the Constitution of India or Citizenship Act, 1955. Being an NRI, an individual doesn’t just get special bank accounts from Indian banks but can also consistently own land and property in India.
Points NRIs Should Remember While Investing
- Before investing in equity market, the time horizon of investment shall be taken into account
- Some mutual funds may not accept deposits from USA or Canada based NRIs. It’s good to check the fund house rules before investing
- Tax is imposed only on the income earned or received in India, in case of NRIs.
- NRI investors don’t have to pay any tax on the dividends announced by equity-oriented funds
Points NRIs Should Remember While Investing
| Invest Management in Indiat | Tax Planning |
|---|---|
| We advise and facilitate on various options of investment which a NRI have to invest in India. | In India taxation is little complicated, we take care of NRI with our expertise in planning taxes and manage them for their benefit |
| Immovable Property Management | Investment in Indian Company |
|---|---|
| We on behalf of NRI take care of their property in India, pay municipal taxes, electricity & water bill as per the need. | We advise NRI and PIO while taking directorship or shares in any Indian company or LLP. |
| Repatriation of funds from India | Litigation Management |
|---|---|
| We help in repatriation of funds which an NRI can get from sale proceeds of assets in India | In Case a case or suit is pending for adjudication in India, then our lawyers represent NRI / PIO before court of law |
Who is NRI?
A non resident Indian is a citizen of India of a foreign national having Indian origin which normally resides outside India for the purpose of employment or for business or vocation. In terms of Income Tax Act, if any Indian stays out of India for more than 182 days then he shall be termed as non-resident Indian for that particular financial year.
Who is PIO?
PIO is a short form of person of Indian origin. A person who is not the citizen of India but at any point of time held an Indian passport, his/her parents or grandparents were the citizens of India in terms of the provisions contained in the constitution of India or Citizenship Act, 1955.
Requirements for PIO and NRI Investment
In general, a PIO and NRI can invest in India in any form in any business in which an ordinary Indian can invest, however on non- repatriation basis. Unlike foreigners who require business visa to do business in India, the NRI and PIO can do any business without any such requirement.
Note : There is no need to file an application to become NRI or PIO. The status is allotted automatically based on the number of days of stay. Citizens of Pakistan, Bangladesh and those whose parents or grandparents were citizens of Afghanistan, Pakistan, Bangladesh, China or Sri Lanka can never be given the status of NRI or PIO.
