International Tax
NRI (Non-Resident Indian)
An Indian citizen residing outside India for more than 182 days in a financial year.
Full Definition
A Non-Resident Indian (NRI) is an Indian citizen who resides outside India. For income tax purposes, an individual is an NRI if they spend less than 182 days in India during the financial year (subject to additional conditions under Section 6). NRIs are taxed in India only on India-source income — not on their foreign income. NRIs have different tax treatment for TDS rates, capital gains, and bank account types (NRE/NRO). FEMA has a separate definition of NRI based on staying outside India for an indefinite period for business/employment.
More International Tax terms
RNOR (Resident But Not Ordinarily Resident)
A transitional residency status for individuals who have recently returned to India after being NRIs.
DTAA (Double Taxation Avoidance Agreement)
Bilateral treaty between India and another country preventing the same income from being taxed twice.
FEMA (Foreign Exchange Management Act)
Indian law governing foreign exchange transactions, cross-border investments and NRI account operations.
LRS (Liberalised Remittance Scheme)
RBI scheme allowing resident individuals to remit up to USD 250,000 per year abroad for permitted purposes.
NRE Account (Non-Resident External)
Bank account in India for NRIs holding foreign earnings converted to INR — interest is tax-free.