This article has been written by Piyush Jha

Introduction

A Non-Resident Indian or NRI is an Indian citizen who holds a valid Indian passport and has temporarily migrated to another country for six months or more for employment, residence, education, or any other purpose. This definition applies to both dual citizens and individuals who have given up their Indian citizenship to acquire citizenship of another country. In other words, NRIs are Indian citizens who live outside of India. The citizenship status of Non-Resident Indians (NRIs) resident can be a complex and perplexing topic. In order to fully understand the laws and regulations surrounding NRI citizenship, it is important to first define who constitutes an NRI.

Who is an NRI?

The legal definition of a Non-Resident Indian (NRI) can be deduced from various acts and legislations, including the Income Tax Act, 1961 and the Foreign Exchange Management Act (FEMA), 1999.

Section 6 of the Income Tax Act, 1961, provides the rules for determining the residential status of an individual for the purpose of income tax in India. It determines whether an individual is a resident or a non-resident in India for a particular financial year based on their physical presence in the country during that year. An individual is considered a resident in India if they have been in India for a period of at least 182 days during the financial year. An individual is considered a resident in India if they have been in India for a period of at least 60 days during the financial year and have been in India for a period of 365 days or more during the 4 years immediately preceding the financial year. Hence, an individual will be considered a non-resident in India if they do not satisfy these criteria.

Under the Foreign Exchange Management Act, 1999 (FEMA), a “person resident outside India” is defined as a person who is not resident in India. This definition includes both Non-Resident Indians (NRIs) and persons of Indian origin (PIOs) who are citizens of other countries.

Citizenship status of NRIs

One of the most important considerations for NRIs is their citizenship status. Under Indian laws, an NRI is considered a citizen of India as long as they have not acquired the citizenship of another country. This means that an NRI can continue to hold Indian citizenship even if they are living and working in another country. However, if an NRI takes up the citizenship of another country, they are typically required to renounce their Indian citizenship. The citizenship status of NRIs can be a complex issue, as there are a number of different laws and regulations that govern their rights and responsibilities. It is governed by the Indian Citizenship Act, 1955 and the Citizenship (Amendment) Act, 2003, as well as various rules and regulations issued by the Indian government. These laws and regulations provide the framework for determining the citizenship status of NRIs and outline the rights and responsibilities of NRIs in India.

Other important considerations of NRIs

• An important consideration for NRIs is their tax status. Non-Resident Indians (NRIs) are expected to pay taxes in India on income that is earned or received in India. This includes income from renting out property in India, income from a business or profession set up in India, and capital gains on the sale of assets in India. NRIs are also required to file income tax returns in India if their taxable income in India exceeds a certain threshold. However, income earned outside of India and certain types of income, such as long-term capital gains on the sale of assets outside of India, are not subject to tax in India for NRIs.
• NRIs also have certain voting rights in India. They are eligible to vote in elections for the Lok Sabha and Rajya Sabha, as well as in elections for the Legislative Assembly of the state in which they were last ordinarily resident. They can cast their vote by proxy or by visiting India during the election period.
• NRIs also have certain property rights in India. They can buy, sell, or inherit property in India, just like resident Indians. However, there are certain restrictions on the purchase of agricultural land and plantation property by NRIs.
• Another important consideration for NRIs is their ability to access public services in India. NRIs are entitled to the same public services as resident Indians, such as health care and education. However, there may be certain restrictions or additional requirements for NRIs to access these services, such as obtaining a special permit or paying higher fees.

Laws governing NRIs in India

The Indian government recognizes the importance of NRIs and their contributions to the country, and as such, has put in place several laws and regulations to protect their rights and interests. These laws and regulations include the following:

The Indian Citizenship Act of 1955: This act defines the laws and procedures for acquiring, losing, and renouncing Indian citizenship. 

The Person of Indian Origin (PIO) scheme: This scheme was introduced in 2002 as a way for individuals of Indian origin who are not of Indian nationality to apply for a PIO card. The PIO card holder is entitled to a 15-year visa for India and can also apply for certain benefits such as buying property and participating in business activities.

The Overseas Citizenship of India (OCI) scheme: This scheme was introduced in 2005 as a way for NRIs to retain their Indian citizenship while living abroad. The OCI card holder is entitled to a lifetime visa for India and can also apply for certain benefits such as buying property and participating in business activities.

Issues Related to Citizenship faced by NRIs

1. As mentioned earlier, NRIs are considered citizens of India as long as they have not acquired the citizenship of another country. However, obtaining and renewing Indian passport, which serves as proof of Indian citizenship, can be a difficult task for many NRIs. The process is often slow and requires a significant amount of documentation, which can be difficult for NRIs who are living and working in another country. Additionally, there have been cases where NRIs have faced issues with their passport applications due to various reasons like name change, marriage and criminal records. This issue can be further complicated if the NRI lives in a country where the Indian embassy or consulate is not easily accessible.
2. Another issue that NRIs often face is regarding their property rights. NRIs can buy, sell or inherit property in India, but there are restrictions and regulations that they need to abide by. For instance, the Foreign Exchange Management Act (FEMA) regulates the purchase of property by NRIs and Persons of Indian Origin (PIOs). Under this act, NRIs and PIOs can purchase any number of residential and commercial properties in India, but there are restrictions on the purchase of agricultural land, plantation property and farmhouses. The process of buying or selling a property can also be a lengthy and complex one, as it requires compliance with various laws and regulations.
3. Another issue that NRIs often face is regarding their rights to vote in India. NRIs can vote in elections for the Lok Sabha and Rajya Sabha, as well as in elections for the Legislative Assembly of the state in which they were last ordinarily resident. However, there have been cases where NRIs have faced difficulties in getting their names enrolled in the electoral roll or casting their vote due to various reasons like lack of proper documentation, or not being present in the constituency during the voting period.

Steps taken by GOI for welfare of NRIs

In recent years, the Indian Government has taken some steps to address these issues and make it easier for NRIs to access their rights and benefits. 

1. The government has launched the e-Migrate and Medical e-Visa schemes, which makes it easier for NRIs to apply for a visa and work in India. 
2. The government has also launched the NRI Portal, which is an online platform that provides NRIs with information and assistance on various issues like passport renewal, property registration and voting. 
3. Government has established a Ministry of Overseas Indian Affairs to address the concerns of NRIs and improve their access to government services. 
4. The government has also established the Pravasi Bharatiya Samman award, which recognizes the achievements of NRIs and People of Indian Origin (PIOs) who have made significant contributions to their adopted countries.
5. An NRO account, or Non-Resident Ordinary Rupee account, is a type of bank account that is meant for Non-Resident Indians (NRIs) to manage their income earned in India. The account can be in the form of a savings, current, or fixed deposit account. The funds in the account can be used to make investments and pay bills in India.
6. Additionally, the government has also set up a number of NRI cells and helpdesks at various embassies and consulates to assist NRIs in resolving their issues.

Despite these efforts, there are still challenges facing NRIs. For instance, many NRIs face difficulties in obtaining certain documents, such as a passport or a visa, due to bureaucratic delays and lack of transparency. Additionally, there is a lack of awareness among government officials and the public about the rights and protections available to NRIs, which can make it difficult for them to access the services they need.

Conclusion 

Overall, the citizenship status of NRIs is a complex issue, with a number of different laws and regulations that govern their rights. While NRIs are considered citizens of India and have the right to retain their Indian citizenship, they often face a number of challenges and issues when it comes to accessing their rights and benefits. These issues include difficulty in obtaining and renewing Indian passport, restrictions on property rights, and difficulties in voting in India. The Indian government has taken steps to address these issues, but more needs to be done to ensure that NRIs are able to access their rights and benefits without facing any difficulties.

References 

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