Residential Status, Person of Indian Origin and Overseas Citizen of India
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Residential Status of Person of Indian Origin (PIO) and Overseas Citizen of India (OCI) – N.D. Savla & Associates
The Income-tax Act, 1961 extends special considerations to Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs). Their residential status in India determines the scope of taxation, including whether only Indian-sourced income is taxable or if global income is also subject to tax. At N.D. Savla & Associates, we provide specialized advisory to PIOs and OCIs for correct classification under Indian tax law and compliance with FEMA and RBI guidelines.
Overview
PIOs and OCIs are often NRIs living abroad who maintain financial ties with India through property, investments, or family connections. While they enjoy certain privileges like simplified visa rules and property ownership rights, their tax liability in India is based on days of stay in India and income earned here. Correct determination of their status ensures that they do not face double taxation or compliance issues.
Features
Advisory on residential status determination for PIOs and OCIs
Clarification on whether global income is taxable in India or not
Tax filing support for PIOs/OCIs with Indian income (rental, capital gains, dividends)
Guidance on NRI, RNOR, and Resident classification for PIOs/OCIs
Compliance with FEMA rules for property ownership, investments, and repatriation
Assistance in applying DTAA benefits to reduce tax burden
Documents Required
Passport (Indian/foreign)
OCI/PIO card copy
PAN card
Proof of stay in India (entry/exit records)
Indian income documents (property rent, sale deed, dividend, interest)
Foreign income/tax return details (if claiming DTAA relief)
Bank account details (NRO/NRE/FCNR)
Procedure
Day Count Analysis – Review the number of days a PIO/OCI has stayed in India during the financial year and past years.
Status Classification – Categorize as Resident, RNOR, or Non-Resident under Indian law.
Scope of Income – Identify taxable income in India (salary, rent, capital gains, etc.).
Tax Filing – File ITR for Indian income and claim DTAA relief for foreign income, if eligible.
FEMA Compliance – Check FEMA rules for property ownership, remittances, and investments.
Ongoing Advisory – Review residential status annually to align with changing travel/stay patterns.
Why This Matters
PIOs and OCIs often assume they are exempt from Indian taxation, which is not true if they earn income in India or meet stay criteria. Incorrect classification may result in tax notices, double taxation, or FEMA violations. With N.D. Savla & Associates, your residential status as a PIO or OCI is assessed correctly, ensuring smooth compliance and optimal tax planning.
