A distinct classification of persons according to their residential status is essential for any nation in our fast-paced globalized world where people are moving across borders. In this sense, the most prevalent groups of people are Overseas Citizens of India (OCIs) and Non-resident Indians (NRIs). To know the difference between NRI and OCI, you must read on.
NRI vs OCI
Though both categories involve individuals with connections to India, they differ in terms of status, rights, and privileges. Here are a few differences you must know.
NRI | OCI |
An NRI is an Indian citizen who resides outside India for employment, business, education, or other reasons for more than 182 days in a financial year. | OCI status is granted to foreign citizens (except those from Pakistan or Bangladesh) who were once Indian citizens or are descendants of Indian citizens. |
NRIs retain their Indian citizenship and hold an Indian passport. | OCI cardholders are not Indian citizens and cannot vote or hold public office in India. |
They have the right to vote in Indian elections and can own property in India, both agricultural and non-agricultural. | They can only buy non-agricultural property and work or study in India without additional permits. |
They are subject to Indian laws and taxation only on income earned within India. | OCIs have similar rights to NRIs in jobs and education, with some exceptions in government positions. |
NRIs do not need a visa to enter India. | OCIs have lifelong visa-free access. |
This is all about the OCI vs NRI difference.
Get End to End Assistance in NRI Property Management Via NoBroker NRI Service
Read more
Your Feedback Matters! How was this Answer?
When my friend came back to India for business purposes, he got confused about these terms. So I had to research them a little bit and explain them to her. From what I studied, the only reason to determine your residency status is for income tax purposes. This answer will guide you on OCI vs NRI.
Get help from the experts at NoBroker to solve property disputes if any. Let NoBroker manage your property so you can stay away from all the hustle.What is the difference between OCI and NRI?
Non-resident Indians are those with Indian ancestry or birth who reside outside of the Indian Republic.
Overseas Indians (also known as PIOs) are Persons of Indian Origin. They are people who were born Indian or originated from Indians and reside outside the Indian Republic.
What is OCI and NRI difference in bank accounts?
1) NRIs are allowed to open FCNR(B) (Foreign Currency Non-Resident Bank) accounts, NRE (Non-Residents External Accounts), and NRO (Non-Residents Ordinary Accounts).
2) PIOs are allowed to open FCNR (B) (Foreign Currency Non-Resident Bank), NRE (Non-Residents External Accounts), and NRO (Non-Residents Ordinary Accounts) bank accounts.
3) Non-Residents Ordinary Accounts, Non-Residents External Accounts, and FCNR (B) (Foreign Currency Non-Resident Bank) bank accounts can all be opened by OCI cardholders.
4) It is permissible for foreign students studying in India to open an NRO (Non-Residents Ordinary accounts). Domestic accounts, NRE (Non-Residents External Accounts), and FCNR (B) (Foreign Currency Non-Resident Bank) bank accounts cannot be opened by them.
These are the main points regarding the OCI vs NRI.
Read More: Is OCI considered NRI? Can NRI have a credit card in India? Can NRI invest in NPS scheme?Your Feedback Matters! How was this Answer?
Hi Dishu,
Don’t we all like to flex a little about that NRI cousin that we have? I’m sure we all do. But when it comes to understanding the difference between NRI vs OCI, we usually confuse them to be similar. But let me tell you, both these concepts are poles apart. I’ll say I am one of those lucky ones, who has both an NRI cousin and an uncle who holds an OCI Card. So let me take this opportunity to explain the difference between NRI and OCI.
Are you facing issues in managing your property back in India? Worry no more! Try NoBroker Property Management Services at affordable prices.An NRI or Non-resident Indian is an Indian Citizen who stays outside India for employment or business purposes and intends to stay outside India for an indefinite period. While an OCI or Overseas Citizen of India is a foreign citizen who gets registered as an Overseas Citizen of India Cardholder under Section 7A of the Citizenship Act, 1955. It allows foreign citizens to live in or work in India for an indefinite period of time.
I would like to elaborate on the difference between NRI and OCI with the help of a table.
| Sl. No. | NRI | OCI Card Holder |
1. |
A person who has resided in India for a period of fewer than 182 days, automatically acquired the status of an NRI. |
A person who belonged to any territory which became a part of Independent India post-1947 or a foreign citizen who became an Indian citizen on or before 1950 is eligible to become an OCI cardholder. |
2. |
You do not need to apply to become an NRI. |
You need to apply for an OCI card through the Government of India Portal online. |
3. |
An NRI has to pay taxes for making investments in India. |
An OCI cardholder has to pay taxes on his global income subject to DTAA (Double Tax Avoidance Agreement) conditions. |
4. |
An NRI is allowed residence in India for not more than 182 days. |
An OCI cardholder can reside in India for an indefinite time. |
I hope now you clearly know the difference between NRI and OCI and you will not be confused about it ever.
Read More: What is the Difference Between NRI and NRE? Do NRI Pay Tax in India?
Difference Between NRI and OCI
Dishu Mishra
6.3k Views
3
3 Year
2022-05-05T19:02:57+00:00 2022-05-05T19:02:59+00:00Comment
Share