Who is an NRI?

An NRI, or Non-Resident Indian, is a person of Indian nationality or origin who resides outside India. The definition and criteria for being considered an NRI can vary slightly depending on the context, such as taxation, legal status, or general usage. Here are some common criteria used to determine NRI status:

1. Taxation: According to the Income Tax Act of India, a person is considered an NRI for tax purposes if they do not meet the criteria for a “resident” in India. Specifically, an individual is a resident if they meet either of the following conditions:
   • They have been in India for 182 days or more during the current financial year, or
   • They have been in India for 60 days or more during the current financial year and 365 days or more during the four preceding years.

   If these conditions are not met, the individual is classified as an NRI for tax purposes.

2. Legal and Immigration Status: An NRI is someone who holds an Indian passport but lives in another country, typically for work, education, or permanent residency.
3. Financial and Investment Purposes: For financial transactions, investments, and banking, NRIs are individuals who maintain Indian citizenship but live abroad. They can open specific bank accounts in India, such as NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts.
4. Cultural and Social Context: Generally, an NRI is someone of Indian origin who lives outside India but maintains ties with the country through family, culture, or business.