Q. 1 Who is a non-resident Indian (NRI)?
Q. 2 Who is a Person of Indian Origin (PIO)?
Q. 3 What is an OCB?
Q. 4 Are OCBs required to produce any certificate
regarding ownership/beneficial interest in them by NRIs?
Q. 5 What are the various facilities available to
NRIs/OCBs?
Section 1: GENERAL
Q. 1 Who is a non-resident
Indian (NRI)?
Ans. An Indian Citizen who stays abroad for employment/carrying on
business or vocation outside India or stays abroad under circumstances
indicating an intention for an uncertain duration of stay abroad is a non-resident.
(Persons posted in U.N. organisations and officials deputed abroad by Central/State
Governments and Public Sector undertakings on temporary assignments are
also treated as non-residents). Non-resident foreign citizens of Indian
Origin are treated on par with non-resident Indian citizens (NRIs).
Q. 2 Who is a Person of Indian Origin?
Ans.
A. For the purposes of availing of the facilities of opening and maintenance
of bank accounts and investment in shares/securities in India
A foreign citizen (other than a citizen of Pakistan or Bangladesh)
is deemed to be of Indian origin, if,
(i) he, at any time, held an Indian passport, or
(ii) he or either of his parents or any of his grand parents was citizen
of India by virtue of the Constitution of India or Citizenship Act, 1955
(57 of 1955).
Note: A spouse (not being a citizen of Pakistan or Bangladesh)
of an Indian citizen or of a person of Indian origin is also treated as
a person of Indian origin for the above purposes provided the bank accounts
are opened or investments in shares / securities in India are made by such
persons only jointly with their NRI spouses.
B. For investments in immovable properties
A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan,
Bhutan, Sri Lanka, or Nepal), is deemed to be of Indian origin if,
(i) he held an Indian passport at any time, or
(ii) he or his father or paternal grand-father was a citizen of India
by virtue of the Constitution of India or the Citizenship Act, 1955 (57
of 1955).
Q. 3 What is an OCB?
Ans. Overseas Corporate Bodies (OCBs) are bodies predominantly owned
by individuals of Indian nationality or origin resident outside India and
include overseas companies, partnership firms, societies and other corporate
bodies which are owned, directly or indirectly, to the extent of atleast
60% by individuals of Indian nationality or origin resident outside India
as also overseas trusts in which atleast 60% of the beneficial interest
is irrevocably held by such persons. Such ownership interest should be
actually held by them and not in the capacity as nominees. The various
facilities granted to NRIs are also available with certain exceptions to
OCBs so long as the ownership/beneficial interest held in them by NRIs
continues to be atleast 60%.
Q. 4 Are OCBs required to produce any certificate
regarding ownership/beneficial interest in them by NRIs?
Ans. Yes. In order to establish that the ownership/beneficial interest
in any OCB held by NRIs is not less than 60%, the concerned body/trust
is required to furnish a certificate from an overseas auditor/chartered
accountant/certified public accountant in form OAC where the ownership/beneficial
interest is directly held by NRIs, and in form OAC 1 where it is held indirectly
by NRIs and further that such ownership interest is actually held by them
and not in the capacity as nominees.
Q. 5 What are the various facilities available
to NRIs/OCBs?
Ans. NRIs/OCBs are granted the following facilities : 1. Maintenance
of bank accounts in India. 2. Investments in securities/shares of, and
deposits with, Indian firms/companies. 3. Investments in immovable properties
in India. Details of these facilities are given in Sections 2, 3 and 4.