Glossary · FEMA & International Tax
NRI
Non-Resident Indian — an Indian citizen or person of Indian origin who resides outside India for purposes of employment, business, or other qualifying reasons.
Under the Income Tax Act, an individual is treated as a non-resident if they are in India for less than 182 days in a financial year, or less than 60 days in the year and less than 365 days in the preceding 4 years. NRI status affects the scope of Indian income that is taxable: only income sourced in India or received in India is taxable for NRIs. NRI bank accounts (NRE, NRO, FCNR) come with repatriation benefits, and NRI investment in Indian assets is allowed under FEMA's liberalised remittance scheme (LRS) up to $250,000 per year.
Examples
An Indian software engineer working in the US for 5 years and visiting India for 60 days in FY 2024-25 is treated as NRI and only pays Indian tax on Indian-sourced income.