Advance authorization scheme for exports
Fema Experts
Indians living abroad are classified into three categories:
1️⃣ NRI (Non-Resident Indian)
2️⃣ PIO (Person of Indian Origin) – (Merged with OCI in 2015)
3️⃣ OCI (Overseas Citizen of India)
Each category has different legal definitions, rights, and restrictions. Let’s break them down!
1. Who is an NRI (Non-Resident Indian)?
An NRI is an Indian citizen who stays outside India due to work, business, or any other purpose for an uncertain duration.
How is NRI status determined?
According to Indian Income Tax Act:
✅ If an individual stays outside India for 183+ days in a financial year (April–March), they qualify as an NRI.
✅ If a person spends less than 182 days in India in the previous year, but more than 365 days in the last four years, they may also be considered a Resident Indian for tax purposes.
Key Benefits of NRI Status
✔ No tax on foreign income
✔ Can invest in India (stocks, mutual funds, real estate)
✔ Eligible for NRE, NRO, and FCNR accounts
✔ Can buy/sell property in India (except agricultural land)
✔ Allowed to vote only in person (can’t use postal ballots)
2. Who is an OCI (Overseas Citizen of India)?
An OCI is a foreign citizen who has Indian ancestry or ties to India but holds citizenship of another country.
Who is Eligible for an OCI Card?
✅ Former Indian citizens who migrated after Jan 26, 1950
✅ Individuals whose parents or grandparents were Indian citizens
✅ Spouses of Indian citizens or OCIs (if married for 2+ years)
Who is NOT Eligible for OCI?
❌ Those who were ever citizens of Pakistan or Bangladesh
❌ Foreign military personnel
Key Benefits of OCI Status
✔ Lifetime multiple-entry visa to India
✔ No need for separate work or student visas
✔ Can own property (except agricultural land)
✔ Can open bank accounts & invest in India
✔ Allowed to apply for Aadhar Card & PAN Card
🚫 Restrictions on OCIs
❌ Cannot vote in Indian elections
❌ Cannot hold government jobs
❌ Cannot buy agricultural land
📌 Important: PIO cards were merged with OCI in 2015, so all PIO holders must now apply for an OCI card.
3. Who Was a PIO (Person of Indian Origin)?
A PIO was a foreign citizen of Indian origin, but this category was abolished in 2015. All PIO cardholders were advised to convert to OCI cards.
Earlier, PIO included:
✔ Individuals with Indian ancestry (parents/grandparents were Indian citizens)
✔ Foreigners married to Indian citizens
🔹 Since 2015, OCI replaced PIO, making it easier to manage Indian-origin foreign citizens.
Key Differences Between NRI, OCI, and PIO
| Feature | NRI (Non-Resident Indian) | OCI (Overseas Citizen of India) | PIO (Person of Indian Origin) |
|---|---|---|---|
| Citizenship | Indian | Foreign | Foreign |
| Visa Requirement | Not needed (Indian citizen) | No visa needed (Lifetime visa) | Required (Now merged with OCI) |
| Can Own Property in India? | Yes | Yes (Except agricultural land) | Yes (Except agricultural land) |
| Can Work in India? | Yes | Yes | Yes |
| Voting Rights? | Yes (only in person) | No | No |
| Govt. Jobs Eligibility? | Yes | No | No |
| Investment in India? | Yes | Yes | Yes |
📌 Note: Since PIO is merged with OCI, there are now only two main categories: NRI & OCI.
Final Summary: Who Should Apply for What?
✔ If you live abroad but are an Indian citizen → You are an NRI
✔ If you are a foreign national of Indian origin → Apply for OCI
✔ If you had a PIO card → Convert it to an OCI card
Hope this helps! 🚀 Let me know if you need further clarification.