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Who is non-resident Indian (NRI)? |
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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 official deputed abroad by
Central/State Governments and Public Sector
undertakings on temporary assignments are also
treated as non-temporary assignments are also
treated as non-residents). Non-resident foreign
citizens of Indian Origin are treated on par with
non- resident Indian citizen (NRIs). |
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Who is a person of Indian Origin? |
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- For the purposes of Availing of the
facilities of opening and maintenance of
bank accounts and investments in
shares/securities in India :
A foreign citizen (other than a citizen
of Pakistan or Bangladesh) is deemed to
be of Indian origin, if,
- he, at any time, held an Indian
passport, or
- he or either of his parents or
any of his grand parents was a
citizen of India by virtue of the
Constitution of India or
Citizenship Act, 1955 (57 of
1955).
Note : A spouse (non 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.
- For investments in immovable properties:
A foreign citizen (other than a citizen
of Pakistan, Bangladesh, Afghanistan,
Bhutan, Sri Lanka or Napal), is deemed to
be of Indian origin if,
- he held an Indian passport at any
time, or
- 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).
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What is an OCB? |
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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 irrevocable 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%.
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Are OCBs required to produce any
certificate regarding ownership/beneficial
interest in them by NRIs? |
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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.
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What are the various facilities available to NRIs/OCBs? |
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NRIs/OCBs are granted the
following facilities :
- Maintenance of bank accounts in India.
- Investments in securities/shares of, and
deposits with,Indian firms/companies.
- Investments in immovable properties in
India.
Details of these facilities are given in
Chapters II, III and IV.
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Source: Reserve Bank of India
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