With a view to attract the savings and other remittance into India through banking channels from the person of Indian Nationality / Origin who are residing abroad and bolster the balance of payment position, the Government of India introduced in 1970 Non-Resident(External) Account Rules which are governed by the Exchange Control Regulations.
The funds held in Non-Resident (External) Accounts (NRE Accounts) qualify for certain benefits like exemptions from taxes in India, free repatriation facilities, etc.
WHO IS A NRI (NON RESIDENT INDIAN)
A Non Resident Indian(NRI) as per FEMA 1999 is an Indian citizen or Foreign National of Indian Origin resident outside India for purpose of employment, carrying on business or vocation in circumstances as would indicate an intention to stay outside India for an indefinite period.
For Taxation: An individual will also be considered NRI if in addition to the above, his stay is less than 182 days during the preceding financial year.
WHO IS A PIO (PERSON OF INDIAN ORIGIN)
A Person of Indian origin (PIO) is a citizen of any country other than Pakistan, Bangladesh who:
1) At any time held an Indian Passport
2) He or any of his parents or grand parents was a citizen of India 3) Is a spouse of an Indian Citizen or a person referred to above.
What is an OCB?
Overseas Corporate Bodies (OCBs) are bodies predominantly owned byindividuals of Indian nationality or origin resident outside India and includeoverseas companies, partnership firms, societies and other corporate bodies whichare owned, directly or indirectly, to the extent of at least 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. Suchownership interest should be actually held by them and not in te capacity asnominees. The various facilities granted to NRIs are also available with certainexceptions to OCBs so long as the ownership/beneficial interest held in them by NRIs continues to be at least 60%What are the various facilities available to NRIs/OCBs? NRIs/OCBs are granted the following facilities:
Maintenance of bank accounts in India.
Investment in securities/shares of, and deposits with Indian firms/ companies.
Investments in immovable properties in India
NRIs Population worldwide
NRIs in USA
• The US Census Bureau has pegged the average Indian American family annual income at $60,000 as against the national average of $38,885. It is estimated that annual buying power of Indian Americans stands at $25 billion. • Today, NRIs are the second largest Asian group (2,226,585) in the US, behind only the Chinese (2,762,524). Source: 2003 American Community Survey • Indians own 50% of all economy lodges and 35% of all hotels in the US, which have a combined market value of almost $40 billion. • One in every nine Indians in the US is a millionaire, comprising 10% of US millionaires. Source: 2003 Merrill Lynch SA Market Study • A University of California, Berkeley, study reported that one-third of the engineers in Silicon Valley are of Indian descent, while 7% of valley hi-tech firms are led by Indian CEOs. Source: Silicon India Readership Survey • Indians along with other Asians, have the highest educational qualifications of all ethnic groups in the US. Almost 67% of all Indians have a bachelor’s or high degree (compared to 28% nationally). Almost 40% of all Indians have a master’s, doctorate or other professional degree, which is five times the national average. Source: The Indian American Centre for Political Awareness. NRIs in UK:
• There are 1,051,800 people of Indian origin in the UK. • The Indian emigrant community in the United Kingdom is now in its third generation. Nor NRIs have been remarkably successful and moved from their being...
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