| Q. 1 |
Who is 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 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). |
| Q. 2 |
Who is a person
of Indian Origin? |
| Ans. |
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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| 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
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%. |
| 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 :
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. |
