Are you a Non-Resident Indian (NRI), Check your Status post this budget 2020?

Are you a Non-Resident Indian (NRI), Check your Status post this budget 2020?

A Non-Resident Indian is an individual who is a citizen of India or a Person of Indian origin (PIO)* and who is currently not a resident of India.

*A person shall be deemed to be of Indian origin (PIO) if he/she satisfies any of the following conditions:

1.if he, or either of his parents or any of his grandparents, was born in undivided India.

2.If he/she is a spouse of an Indian Citizen

3.If he/she held an Indian passport any period of his lifetime.

As per FOREIGN EXCHANGE MANAGEMENT ACT, 1999 & Income Tax Act 1961, an individual or POI is said to be NRI if he/she satisfies any of the following conditions:

  1. If he/she is in India for 182 days or less during the preceding financial year; or
  2. If he/she is in India for 60 days or less during the previous year and 365 days or less during 4 years immediately preceding the previous year(PPY).
  3. If he/she stays outside India for an indefinite period for employment or carrying a business or vocation activity.

However, condition No. 2 does not apply where an individual, who left India for employment or crew member of the Indian Navy ship.

Post-Budget 2020 :

In this Budget 2020, A new rule has been proposed for NRI’s residency status,

1.Condition-1 of 182days is changed. An Indian Citizen or POI has to stay overseas 245days in the Financial Year(FY)*. i.e) he/she can only stay in India less than 120days in that FY.

2.Condition – 2 & 3 remains the same.

Illustration :

Let’s Assume if Gokul leaves India and Stayed for 250days abroad in the FY 2020-21, then for the Assessment year(AY)* 2021-22, Gokul’s residential status would be NRI.

Let me tell another example where Gokul’s wife left India and Stayed with him for 6Months Say 180days abroad in the FY 2020-21, then for the AY 2021-22, her residential status would be Resident of India.

*In India, Financial Year(FY) starts from 01-April to 31-March – the year in which the person earns an income.

*The assessment year (AY) is the year that comes after the FY – the year when income earned during FY is assessed and taxed. That is why ITR have AY.

For the Calculation of days stayed in India,

Dates stamped in Indian Passport is considered as proof.

Both the Arrival date and Departure date are counted as days stayed in India.

If you are traveling to India for vacation every 3 months, It is advisable to track the no of days stayed and Keep yourself a Count-down Chart.  Max Value should be 119days in that chart. Keep on reducing the value once after the trip. Plan your trips based on the days left on the chart.

Please check out the IT Residential Calculator here.

Table of NRI Population:

Population of Overseas Indians

SI.No.CountryNon-Resident Indians (NRIs)Persons of Indian Origin (PIOs)Overseas Indians
1Afghanistan296092969
2Albania50252
3Algeria3500163516
4Andorra1600160
5Angola150025004000
6Anguilla15520
7Antigua & Barbuda250300550
8Argentina60018002400
9Armenia1477231500
10Aruba-10001000
11Australia241000255000496000
12Austria and Montenegro130001800031000
13Azerbaijan95324977
14Bahamas25050300
15Bahrain3129183257316175
16Bangladesh10385610391
17Barbados10021142214
18Belarus42067487
19Belgium11202800019202
20Belize250980010050
21Benin156301563
22Bhutan60000060000
23Bolivia501060
24Bonaire & Smaller Islands-200200
25Bosnia & Herzegovina20626
26Botswana9000300012000
27Brazil47293445073
28British Virgin Islands501060
29Brunei Darussalam115009811598
30Bulgaria10062162
31Burkina Faso2005205
32Burundi46535500
33Cambodia1500101510
34Cameroon2450245
35Canada1843208318651016185
36Cape Verde Islands20020
37Cayman Islands1500101510
38Central African Republic10010
39Chad1200120
40Chile150020003500
41China5550052056020
42China (Hong Kong)31989643038419
43China (Rep. of) (Taiwan)30683783446
44Colombia112106218
45Comoros30200230
46Congo (Dem. Rep. of)9000259025
47Congo (Republic of)3508358
48Cook Island5200205
49Costa Rica23020250
50Cote d’Ivoire (Ivory
Coast)
150001500
51Croatia433780
52Cuba500200700
53Curacao-15001500
54Cyprus57301285858
55Czech Republic18006002400
56Denmark8100310011200
57Djibouti3500350
58Dominica (Commonwealth of)15200215
59Dominican Republic10075175
60East Timor70070
61Ecuador434790
62Egypt35002653765
63EI Salvador14317
64Equatorial Guinea2500250
65Eritrea3003303
66Estonia535421956
67Ethiopia5250235273
68Fiji1400313798315198
69Finland5159661611775
70France1900090000109000
71France (Reunion Island)250280000280250
72France (Guadeloupe, Martinique, St. Martin)4206680067220
73Gabon10010110
74Gambia70016716
75Georgia319283200
76Germany10896537128146093
77Ghana10000010000
78Greece1201548512500
79Grenada20050005200
80Guatemala503383
81Guinea (Republic of)7000700
82Guinea Bissau1004104
83Guyana300297493297793
84Haiti5800580
85Holy SeeNA00
86Honduras15217
87Hungary10261241150
88Iceland25776333
89Indonesia7500100000107500
90Iran40002734273
91Iraq10000010000
92Ireland135002050034000
93Israel124678500097467
94Italy17230125000197301
95Jamaica50007500080000
96Japan2804767028717
97Jordan2005015720207
98Kazakhstan55002505750
99Kenya200006000080000
100Kiribati-5050
101Korea (DPR)15015
102Korea (Republic of)1118034611526
103Kuwait9284211482929903
104Kyrgyzstan4786284814
105Laos, PDR42575500
106Latvia76025785
107Lebanon8500378537
108Lesotho (Kingdom of )50010001500
109Liberia300003000
110Libya150021502
111Liechtenstein (Principality of )5510
112Lithuania25050300
113Luxembourg18725002372
114Macedonia10515
115Madagascar25001500017500
116Malaysia22795027600002987950
117Malawi2500800010500
118Maldives2500010825108
119Mali2990299
120Malta18501502000
121Marshall Islands (Republic of)14115
122Mauritania60060
123Mauritius10500884000894500
124Mexico800016009600
125Micronesia101
126Moldova1908198
127Monaco304070
128Mongolia1505155
129Montserrat40200240
130Morocco25896354
131Mozambique25003000032500
132Myanmar899120000002008991
133Namibia20059259
134Nauru20020
135Nepal6000000600000
136Netherlands35000200000235000
137Netherlands Antilles258137006281
138New Zealand75000125000200000
139Nicaragua6612
140Niger1500150
141Nigeria400003540035
142Norway77181230020018
143Oman688226919689145
144Pakistan000
145Palau (Republic of)15015
146Palestine (PLO)20020
147Panama4000900013000
148Papua New Guinea14001001500
149Paraguay200400600
150Peru39955454
151Philippines10500015000120000
152Poland40006004600
153Portugal72446600073244
154Qatar691539500692039
155Romania8651881053
156Russian Federation28610195030560
157Rwanda2940603000
158Samoa403070
159San MarinoNA00
160Sao Tome and Principe (Rep. of)50050
161Saudi Arabia (Kingdom of)281240821602814568
162Senegal50032532
163Serbia56763
164Seychelles4000600010000
165Sierra Leone90050950
166Singapore350000300000650000
167Slovak Republic20050250
168Slovenia8050130
169Solomon Islands20020
170Somalia1000100
171South Africa6000015000001560000
172Spain353082000055308
173Sri Lanka1400016000001614000
174St. Kitts and Nevis250500750
175St. Lucia25050055255
176St. Martin-53005300
177St. Vincent & the Grenadines5030003050
178Sudan26001002700
179South Sudan10005001500
180Suriname150154321154471
181Swaziland5005001000
182Sweden153491037025719
183Switzerland17403716424567
184Syria1070107
185Tajikistan1100251125
186Tanzania100005000060000
187Thailand20000175000195000
188Togo50010510
189Tonga64046
190Trinidad & Tobago1800555000556800
191Tunisia12116137
192Turkey1609991708
193Turkmenistan482-482
194Turks & Caicos Islands20035235
195Tuvalu-5050
196Uganda23500650030000
197Ukraine75414227963
198UAE310000045863104586
199UK32500015000001825000
200USA128000031800004460000
201Uruguay50030530
202Uzbekistan35032382
203Vanuatu10800810
204Venezuela7040110
205Vietnam30003003300
206Yemen5001000010500
207Zambia50001800023000
208Zimbabwe50090009500
TOTAL131133601788236930995729
(Compiled in December, 2018)

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