How many years my son should study in India to avoid NRI stamp, he is in class IX?

Question

Any related information on NRI students is highly appreciated. We intend to be consider as regular Indian Student

Answer 1

I dunno what the big deal is, if he is studying and residing in India, then he automatically loses his NRI status once he stays in India for more than six months.

This is the legal definition of a Non-Resident Indian

"Any Indian citizen or a person of Indian origin who resides outside India and who comes on a visit to India in any previous year will be treated as resident in India if he stays in India in that year for 182 days or more."

Income Tax Act 1961, Section 6, Clause 2(a)

However, if you re an NRI, please note that after six months he will be considered only as "the dependent of a NRI".

The residential status of a person is decided under two different Acts, one under Income Tax Act, 1961, ( I.T. Act) and another under Foreign Exchange Regulation Act, 1973 (FERA). The concept of Non-Resident under FERA is different as compared to that under Income Tax Act. Under Income Tax Act, the residential status of a person is determined on the basis of number of days he stays in India whereas under FERA, it is the intention of a person to be in India or outside India would be an important factor determining his residential status.

Section 2 (p) and 2 (q) of FERA define resident and non-resident as under:

2(p) "person resident in India" means-

(i) a citizens of India ,who has, at any time after the 25th day of March, 1947, been staying in India, but does not include a citizens of India who has gone out of, or stays outside, India in either case-

(a) for or on taking up employment outside India, or

(b) for carrying on outside India a business or vocation outside India, or

(c) for any other purpose, in such circumstances as would indicate his intention to stay outside India for an uncertain period.

(ii) a citizen of India, who having ceased by virtue of paragraph (a) or paragraph (b) or paragraph (c) of sub-clause (i) to be resident in India, return to, or stays in, India, in either case-

a) for or on taking up employment in India, or

b) for carrying on in India a business or vocation in India, or

c) for any other purposes, in such circumstances as would indicate his intention to stay in India for an uncertain period.

(iii) a person, not being a citizen of India, who has come to, or stays in India, in either case-

a) for or on taking up employment in India, or

b) for carrying on in India a business or vocation in India, or

c) for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period.

(iv) a Citizen of India, who not having stayed in India at any time after the 25th day of March, 1947, comes to India for any of the purpose referred to in paragraphs (a), (b), and (c) of the sub-clause (iii) or for the purpose and in the circumstances referred to in paragraph (d) of that sub-clause or having come to India stays in India for any such purpose and in such circumstances.

Explanation.- A person, who has, by reason only of paragraph (a) or paragraph (b) or paragraph (d) of sub-clause (iii) been resident in India, shall, during any period in which he is outside India be deemed to be not resident in India.