Do you mistake specific terms and then wonder what they mean?
Ever wondered who an NRI is and what is OCI? Confusing right? This article will walk you through the meaning of each of these terms to simplify your understanding.
Who is an NRI?
A ‘Non-resident Indian’ (NRI) is a person resident outside India who is a citizen of India
An NRI is classified as an individual who has gone out of India, or who stays outside India for employment or for carrying on business or any vocation. Furthermore, an NRI is that individual who has gone out of India or who intends to stay outside India for any other purpose signifying his intent to stay outside India for an indefinite period.
What is OCI?
A person of Indian origin who is a foreign national and gets registered as Overseas Citizen of India Cardholder under Section 7A of the Citizenship Act, 1955 is an OCI.
The Government of India introduced this card in 2005 to offer the option for foreign citizens of Indian origin to live and work in India for an indefinite period. India does not provide the advantage of the dual benefit; however, an OCI card offers this facility.
Difference between NRI and OCI
Description | NRI | OCI Card Holder |
Eligibility | An individual automatically acquires the status of an NRI, if he has resided in India for less than 182 days. | A Foreign subject who was eligible to become an Indian Citizen on or at any given time post-1950 or who belonged to a territory that became part of India after 1947. |
Applicability | There is no applicability procedure to classify as an NRI. The moment you fulfil a specific stipulation, inevitably your status is that of an NRI. | You have to apply for an OCI card via the Government of India online portal. The time frame for processing post acknowledgement is 30 days. |
Investment options | An NRI can invest in various financial investment opportunities available in India. An NRI can invest in residential/commercial properties but is not allowed to invest in agricultural or plantation property or a farmhouse. | An OCI can invest in various financial investment opportunities available in India. An OCI holder too can invest in residential/commercial properties but is not allowed to invest in agricultural or plantation property or a farmhouse. |
Taxation | Income earned through investments and receipts in India is taxable in India. | An OCI cardholder is liable for taxation on his/her global income and is subject to the conditions of DTAA (Double Tax Avoidance Agreement). |
Admissibility to reside in India | For 182 days or less. | For an indefinite period |
Documentation | Overseas residential proof | To apply for an OCI Card, the holder needs the following documents:
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Now that the difference between NRI and OCI has is explained. The next time you need to disclose your status do check up on this article.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
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