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Q.1
Who is a 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 officials deputed abroad by Central/State
Governments and Public Sector undertakings on
temporary assignments are also treated as non-residents).
Non-resident foreign citizens of Indian Origin
are treated on par with non-resident Indian
citizens (NRIs) for the purpose of certain facilities. |
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Q.2 Who is a person
of Indian Origin? |
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Ans. A.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, |
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he, at any time, held an Indian passport, or |
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he or
either of his parents or any of his grand parents
was citizen of India by virtue of the Constitution
of India or Citizenship Act, 1955 (57 of 1955). |
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Note: A spouse
(not 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. |
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B. For investments
in immovable properties |
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A foreign citizen
(other than a citizen of Pakistan, Bangladesh,
Afghanistan, Bhutan, Sri Lanka, or Nepal), is
deemed to be of Indian origin if, |
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he held an Indian passport at any time, or |
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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? |
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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 irrevocably
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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Q.4 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 initially
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. Thereafter
a simple certificate signed by the Managing Director
or Chief Executive Officers of the OCB on the
lines indicated above may be submitted.
Note:
In the case of closely held OCBs (i.e. where shareholders
belong to the same family or are closely related
to each other, certificate in form OAC/OAC1 may
be submitted in the first instance alongwith documentary
evidence to the effect that the shareholders belong
to the same family or are closely related to each
other. Annual submission of OAC/OAC1 thereafter
is not necessary and it will suffice if a certificate
signed by the Managing Director/Chief Executive
Officer of the OCB is submitted stating that there
is no change in the shareholding pattern since
submission of the last certificate. |
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Q.5 What are the
various facilities available to NRIs/OCBs? |
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NRIs/OCBs are granted
the following facilities : |
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Maintenance of bank accounts in India. |
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Investments
in securities/shares of, and deposits with,
Indian firms/companies. |
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Investments
in immovable properties in India. |