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NRI Definition & Advisory · ICAI Registered Firm

Non-Resident Indian (NRI) knowing your status is the first tax decision.

Detailed advisory on Non-Resident Indian status under both the Income-tax Act, 1961 and FEMA — two parallel definitions that drive your tax liability, banking rights, and investment access in India.

The term 'NRI' is used in everyday conversation, but it has two very different meanings depending on whether you are looking at it through the lens of income tax or FEMA. The Income-tax Act looks at days of physical presence in India; FEMA looks at the intention behind your stay outside India.

Getting the wrong definition can lead to wrong account types, wrong tax rates, and wrong investment products. Many NRIs unknowingly continue to hold resident bank accounts and resident demat accounts long after they move abroad — a clear FEMA breach.

We help individuals confirm their NRI status accurately under both laws, advise on the right account and investment structure, and align tax filing with the correct status. Status reviews are done at the start of every financial year for clients with movement between countries.

Our Non-Resident Indian Services

01

NRI Status Determination

Confirmation of NRI status under Section 6 of the Income-tax Act based on day-count analysis.

02

FEMA Status Review

Parallel review under FEMA — Person Resident in India vs Person Resident Outside India.

03

Bank Account Restructuring

Conversion of resident savings to NRO and opening of NRE / FCNR accounts.

04

Investment Realignment

PIS account, mutual fund KYC, and demat account updates to NRI status.

05

PAN & Aadhaar Update

Update of address and status fields on PAN and Aadhaar to reflect non-resident status.

06

Tax Implications Note

Year-wise note on tax position and TDS rates applicable post status change.

07

Property & Loan Advisory

Guidance on property held in India and continuation / pre-closure of housing loans.

08

Annual Status Review

Year-end re-confirmation of status before ITR filing season.

Our Approach

1

Travel History

Collection of passport stamps, visa, and travel records for the financial year.

2

Day-Count Analysis

Calculation under Section 6(1) and Section 6(1A) to confirm tax residential status.

3

FEMA Position

Parallel review of intent and duration of stay abroad to fix FEMA status.

4

Action Plan

Bank, investment, and PAN updates listed with timelines for completion.

5

Implementation

Assistance with bank, broker, and authority filings to align records with status.

Why It Matters

Clarity on Income-tax Act and FEMA status
Day-count analysis with documentary backup
Bank account restructuring guidance
Investment account realignment
Avoidance of FEMA compounding exposure
Correct TDS rates applied on Indian income
Right ITR form selected for filing
Annual status review for frequent travellers

Frequently Asked Questions

An individual whose stay in India is less than 182 days in the financial year, subject to other conditions.

A person resident outside India who is a citizen of India or of Indian origin.

Yes, the tests differ and the same individual can have different statuses under tax and FEMA.

No, it must be evaluated each financial year based on actual day-count and intent.

No, resident accounts must be converted to NRO once the individual becomes NRI under FEMA.

Unsure About Your NRI Status?

Get a documented review of your status under both the Income-tax Act and FEMA — and a clear action plan for bank, investment, and tax alignment.

Get My Status Review or call +91 9819 000 511