India Dual Citizenship Mega Thread (Merged)

[ASGK]

An important question---

about OCI cards, please!!!!!!-- Hi Mangal and others, I'm so thankful that I found this site and it's real good of you guys to have condensed the rules for the OCI cards so that now, it's so much easier for everyone!!!!!!- I want to know though, I and my spouse applied for the OCI cards in the middle of March 2006. Till now, it's showing "yet to register in concern mission". I applied in CGINY. We haven't recd. any other letter indicating anything else is required other than all the things we sent. Now, we have to go to India for adoption. So, what do we do??? -- Should we wait here till it comes, or can we take a visit visa and go????? - If someone could please let me know this, I'll be grateful!!!!- How long do you think it might take for us????

Thanks,
ASGK

 

[PIO1]

about OCI cards, please!!!!!!-- Hi Mangal and others, I'm so thankful that I found this site and it's real good of you guys to have condensed the rules for the OCI cards so that now, it's so much easier for everyone!!!!!!- I want to know though, I and my spouse applied for the OCI cards in the middle of March 2006. Till now, it's showing "yet to register in concern mission". I applied in CGINY. We haven't recd. any other letter indicating anything else is required other than all the things we sent. Now, we have to go to India for adoption. So, what do we do??? -- Should we wait here till it comes, or can we take a visit visa and go????? - If someone could please let me know this, I'll be grateful!!!!- How long do you think it might take for us????

Thanks,
ASGK

Wait till the last week or two, and apply for a 6 month visa, if you don't have an OCI.

 

[gotia]

In my humble opinion - no one should try to do something serious just by reading even bare acts, RBI site or any official site.

a) the legal interpretation requires lot of expertise and knowledge. Trying to interprete it yourself could be harmful. One should not file IT return just by reading Income Tax official website. If it was that easy then the lawyers, accountants would have packed their bags soon after the revolution of www
b) most times it is the interplay of the various other acts, local laws, rules, case laws etc determine legal view of a case. Referring to just one site could lead to wrong conclusions. e.g. if one used the RBI site to define resident in India while filing IT return or paying wealth tax then one could be in trouble. Also a resident in India could be in trouble to buy agri land if there are specific local provisions barring it in that region,
c) the information on any site comes with a disclamour - even RBI site has one. Anyone who wants to use the information available on the web should always use their judegement, expert opinion

While the RBI will make every effort to maintain up-to-date and accurate information on this site, visitors should be aware that the RBI accepts no responsibility for the accuracy or completeness of any material contained on this site and recommends that visitors exercise their own care and judgment with respect to its use.

Links to other websites are provided to help you meet your needs for relevant and related information but the RBI is not responsible for the content of those sites.

This applies to other sites / links as well. UTI Bank, femaonline and others have clearly put similar disclamours. Even this chat forum comes with a disclamour.

The web sites started with good intentions may not have been updated with the latest information. This is a well known fact. And remember 'there is nothing called a free lunch'. Tax, investment advice does not come free.

I hope people using this chat forum are not taking serious investment decisions, immigration related decisions just by reading the poster's opinions. These just give us the pointers, views and experiences. 'The information can be used at user's risk' is the mantra of the webworld.

pio1
We respect your openion.
we are all here to gain access to knowledge.
knowledge is POWER.
when ever we deal with some one in future no one can make us fool.
we can not be cheated. these are the quetion most of us will deal in future.
next time we will have to pay for this same knowledge.
that is the importance of senior member of forum spending their time and effort.
real good service

 

[PIO1]

I agree with basis-all this information is just a guideline.Use this information to move ahead.Do not base any decision on what we post or discuss here alone.Any (or all) of us can easily be wrong and no one of us will take any responsibility if anything goes wrong.
Of course we are posting what is true "to the best of our knowledge and belief".

On another note OCI cell of CGINY has shut down their phone line and fax line.If anyone has to make any queries (ha ha) use their general phone/fax no.

Mangal, The sites "indialiason", "sify", and "femaonline" and the "Ready reconner" are definately 100% wrong on some accounts and can cause you grief. Personally I wouldn't use them. Reasoning is in previous posts - but I am not going to get into an argument again.

The only sites that are valid IMHO are the legislation, citizenship act and amendments, the RBI, and Income Tax. As for the other sites, I can't comment.

 

[mangal969]

about OCI cards, please!!!!!!-- Hi Mangal and others, I'm so thankful that I found this site and it's real good of you guys to have condensed the rules for the OCI cards so that now, it's so much easier for everyone!!!!!!- I want to know though, I and my spouse applied for the OCI cards in the middle of March 2006. Till now, it's showing "yet to register in concern mission". I applied in CGINY. We haven't recd. any other letter indicating anything else is required other than all the things we sent. Now, we have to go to India for adoption. So, what do we do??? -- Should we wait here till it comes, or can we take a visit visa and go????? - If someone could please let me know this, I'll be grateful!!!!- How long do you think it might take for us????

Thanks,
ASGK

Check your deadlines-If you can wait for the OCI wait-though with your current status I would look at a minimum period of 6-8 weeks.
I dont know for sure but if you are going for adoption from square 1 an OCI would look more favourable(not officially though).

 

[mangal969]

PIO1,
Basically what i am trying to say is read the forums read the sites but dont base you decisions on these sites or our discussions.Weigh the options based on the information available but if you are really going to do something consult an expert.

Though with the amount of mis-information I wonder how much an "expert" really knows.......

 

[immuser]

Sorry if I am asking a often anwered question. I did not see it in the messages I scanned through.

Is there an approximate timeline - length of wait for CGI-NY office for OCI and for PIO cards?

I am thinking of just applying for PIO card and then apply for conversion. Since I hear PIO card is issuance is much faster and clearer i.e., the kinks in the system are worked out.

This will give me the flixibility if I need to travel and OCI will be processed whenever; it won't have any impact on my travel.

Any opinions?

S. Rambha

Applying for the PIO card first and then applying for OCI should not be a problem. I got my PIO card within 10 days and then sent my OCI application immediately. Applied for OCI mid-march - went to "Under process" 3rd week of April. Other people have reported no problems with this approach.
That gives us a window of 15 years to wait for CGINY to clear the OCI application ;-)

Immuser

 

[mangal969]

Sorry if I am asking a often anwered question. I did not see it in the messages I scanned through.

Is there an approximate timeline - length of wait for CGI-NY office for OCI and for PIO cards?

I am thinking of just applying for PIO card and then apply for conversion. Since I hear PIO card is issuance is much faster and clearer i.e., the kinks in the system are worked out.

This will give me the flixibility if I need to travel and OCI will be processed whenever; it won't have any impact on my travel.

Any opinions?

S. Rambha

NY's OCI application process is admittedly a big mess.
If you have no anticipation of going to India in the next 6 months dont bother for the PIO card and get an OCI directly.
If you will be going sometime just for a visit before 6 months apply for your OCI now and take a one month tourist visa prior to departure.
If you are in a situation where you need to go at the drop of a hat go for the PIO card and later apply for OCI

 

[PIO1]

PIO1,
Basically what i am trying to say is read the forums read the sites but dont base you decisions on these sites or our discussions.Weigh the options based on the information available but if you are really going to do something consult an expert.

Though with the amount of mis-information I wonder how much an "expert" really knows.......

fair enough. I really don't think it is too hard to get an answer, but the problem is that the sort of people who write these sites and call themselves experts are the same ones who tell us OCI is dual citizenship etc. I.e. they scratch the surface.

Anyway I feel sorry for those who are trying to figure it all out.

 

[ASGK]

Hi Mangal and PIO1,
Is it 6-8 weeks from the time I sent in my application (w/photos, etc..) or 6-8 weeks from now???? If it's 6-8 weeks from the time I sent in my OCI app, then it's already been 4 weeks, and I'm planning to go in the 1st week fo June. But, my question is, if I'm in India, and they send the sticker, etc..... here to CGINY, in NYC, then what do I do??? Could it wait here till I adopt and then come back (maybe 4-5 months)??? - Nobody was willing to even answer questions, other than saying it'll be 8-10 weeks at CGINY. And my neighbor who applied in 1st week of Feb, still has not gotten it. So, if I take a visa, can I go to the Indian Consulate in India and get my sticker put on?? How do I tell that now and to whom????
Thanks,

 

[PIO1]

I have a rather interesting question-What really affects us more-FEMA or the IT act ??

One thing i realised is that all this provision of intent of residency,180 days etc does not affect us as OCI holders.We are NRI's and that is it.Even if we settle in India on the basis of our OCI cards for the period until we adopt Indian citizenship we are NRI's.There is no way an OCI card holder can get a resident Indian status.

FEMA is what you can invest in, and Income Tax is how much tax you pay. They are two separate things.

This is interesting: If you settle in India, even if you are a foreigner (e.g. US National, not of Indian origin), you are treated like a resident by FEMA and Income Tax!!! They don't care about your visa etc.

There are other things you can't do but a foreigner can have a farm and a PAN card if they settle in India!

OCI and PIO have no bearing on tax, but they can help procedurally with FEMA investments. Even then, if you don't have a PIO or OCI card, I think you can argue successfully that you are a "person of Indian origin" in the FEMA sense if you can prove you were once Indian, or your father or your father's father was Indian at one point.

182 days does effect you. Even with/without PIO/OCI, you are a resident under FEMA IT if you hit this number. "Resident" under IT and "Person Resident in India" under FEMA. So what does PIO/OCI give a resident of India? Not much - the same rights as a foreigner without visa and registration hassles.

 

[PIO1]

Hi Mangal and PIO1,
Is it 6-8 weeks from the time I sent in my application (w/photos, etc..) or 6-8 weeks from now???? If it's 6-8 weeks from the time I sent in my OCI app, then it's already been 4 weeks, and I'm planning to go in the 1st week fo June. But, my question is, if I'm in India, and they send the sticker, etc..... here to CGINY, in NYC, then what do I do??? Could it wait here till I adopt and then come back (maybe 4-5 months)??? - Nobody was willing to even answer questions, other than saying it'll be 8-10 weeks at CGINY. And my neighbor who applied in 1st week of Feb, still has not gotten it. So, if I take a visa, can I go to the Indian Consulate in India and get my sticker put on?? How do I tell that now and to whom????
Thanks,

AsgK, If you are not an OCI you need to register after 6 months - so try and come back before then.

You could get it within 2-4 weeks from "granted". If you are not granted, then I would say that your chance of getting it before 1st week of June are slim.

Now there are no consulates of India in India. The equivalent outside New Delhi is the police FRRO (Mumbai, Kolkata, Chenai, Amritsar). PLEASE STAY AWAY FROM THE FRROs!!!! They will ask for bribes if they don't lose it and are nutorious places. If you are in Delhi, you may be able to get some cooperation from the MHA. But generally I would strongly recommend you collect your OCI when you come back - send them a note that you will be away and to keep your OCI.

Why do you need the OCI? Just for the visa? If so, go for a one year visa if you think your stay could go over 6 months - but please avoid registration and do not mention that you are there for adoption if you register - say holiday.

[If you need the OCI for adoption/business purposes, take a print out of the "granted" web screen and use this as a defacto certificate. There is no legislation that says you need to show the certificate to anyone. Once it has been issued, you are an OCI. And I think you could successfully argue in a court of law that you are an OCI once the MHA has you as "granted". This is a last resort, and I certainly don't recommend it.]

 

[immuser]

CGI NY Volume Estimate

I applied for my in-laws' OCI on Feb 15 and my own on Mar 20. Since it appears that CGINY assigns file numbers sequentially in the order in which they receive the applications, the difference in file numbers provides a rough estimate of the volume of applications being received by CGI NY in that time-frame.

There is a difference of about 1160 file numbers between the two applications and there were 22 working days which provides us with a rough average of about 52.7 applications per day at CGI NY.

Other details of time line:
1st set: Applied - Feb 15
File number assigned and "Under process" - 2 weeks later
"Granted" - 2 weeks after "Under process"
No letter from CGI NY yet

2nd set: Applied - Mar 20
File number assigned and "Under process" - 4.5 weeks later

The volume of actual applications received in that time frame (53 per day) is quite large and is only likely to increase in the near future before it peaks and drops down. I don't think CGI NY has enough personnel in the CGI cell to handle this initial large volume.

So, I don't think they are staffed to handle the large influx of applications, photo re-scan and other requests from India and affixing of visa stickers and distribution of OCI booklets (even if they are received in a timely manner from India) simultaneously. The file numbers in "Granted" status has crossed 1950+. So, unless they add more personnel to the CGI cell, I think we are in for a significant wait for the backlog to clear :-(

Immuser

 

[PIO1]

PIO1
when same decision published in times of india it was quated as Ending the controvesy over NRI status
they intrepted it as NRI status does not chane with stay home(with factor of intend included in this case staying for treament)
if i am not missing some thing factor of intend is deciding factor if controvacy arises with any rules act over NRI status.
in above case supreme court rules against high court decision and revenue department

Agree with basis - the scope of the judgement was relatively narrow. If your spouse is a resident in India, and you are not otherwise a resident in India, the govt interpreted the law as saying you are a resident even if you stay with your spouse for 1 day. The courts said no, your stay must demonstrate some permanence. Now if you took up a job, then the story would be completely different.

Journalists even in the US completely get the wrong spin whenever they report on judgments, because the texts require a bit of patience to read

[BTW - this guy waited 15 years ... must have had a lot of money in the NRE account, and some good lawyers ]

 

[PIO1]

I applied for my in-laws' OCI on Feb 15 and my own on Mar 20. Since it appears that CGINY assigns file numbers sequentially in the order in which they receive the applications, the difference in file numbers provides a rough estimate of the volume of applications being received by CGI NY in that time-frame.

There is a difference of about 1160 file numbers between the two applications and there were 22 working days which provides us with a rough average of about 52.7 applications per day at CGI NY.

Other details of time line:
1st set: Applied - Feb 15
File number assigned and "Under process" - 2 weeks later
"Granted" - 2 weeks after "Under process"
No letter from CGI NY yet

2nd set: Applied - Mar 20
File number assigned and "Under process" - 4.5 weeks later

The volume of actual applications received in that time frame (53 per day) is quite large and is only likely to increase in the near future before it peaks and drops down. I don't think CGI NY has enough personnel in the CGI cell to handle this initial large volume.

So, I don't think they are staffed to handle the large influx of applications, photo re-scan and other requests from India and affixing of visa stickers and distribution of OCI booklets (even if they are received in a timely manner from India) simultaneously. The file numbers in "Granted" status has crossed 1950+. So, unless they add more personnel to the CGI cell, I think we are in for a significant wait for the backlog to clear :-(

Immuser

A few weeks ago I don't think anyone in NY had got an OCI - so they are learning to walk before they can run.

 

[PIO1]

In my humble opinion - no one should try to do something serious just by reading even bare acts, RBI site or any official site.

a) the legal interpretation requires lot of expertise and knowledge. Trying to interprete it yourself could be harmful. One should not file IT return just by reading Income Tax official website. If it was that easy then the lawyers, accountants would have packed their bags soon after the revolution of www
b) most times it is the interplay of the various other acts, local laws, rules, case laws etc determine legal view of a case. Referring to just one site could lead to wrong conclusions. e.g. if one used the RBI site to define resident in India while filing IT return or paying wealth tax then one could be in trouble. Also a resident in India could be in trouble to buy agri land if there are specific local provisions barring it in that region,
c) the information on any site comes with a disclamour - even RBI site has one. Anyone who wants to use the information available on the web should always use their judegement, expert opinion

While the RBI will make every effort to maintain up-to-date and accurate information on this site, visitors should be aware that the RBI accepts no responsibility for the accuracy or completeness of any material contained on this site and recommends that visitors exercise their own care and judgment with respect to its use.

Links to other websites are provided to help you meet your needs for relevant and related information but the RBI is not responsible for the content of those sites.

This applies to other sites / links as well. UTI Bank, femaonline and others have clearly put similar disclamours. Even this chat forum comes with a disclamour.

The web sites started with good intentions may not have been updated with the latest information. This is a well known fact. And remember 'there is nothing called a free lunch'. Tax, investment advice does not come free.

I hope people using this chat forum are not taking serious investment decisions, immigration related decisions just by reading the poster's opinions. These just give us the pointers, views and experiences. 'The information can be used at user's risk' is the mantra of the webworld.

That's where the difference is. Most countries have a taxpayers charter or similar. Common law cases around the world (am sure there must be something in India) have shown that if a person has taken due care to understand a law, and a reasonable person would draw an understanding of it, then they can not be held to have intentionally broken it, and should not be penalised (they may need to pay back taxes, but will not get a penalty). Material published by governments including websites has special significance and come under official communication provisions, and can be brought before courts even if they have disclaimers.

So if the RBI or IT publishes wrong stuff (and yes, the RBI's FAQs have small errors too that I can share with you) you can more successfully argue that you took due care.

Personally my experience shows that the magnitude of errors you get on Govt sites and private ones are at other ends of the spectrum.

Also private sites are not answerable to anyone, not subject to updating, and not being poured over by dilligent bureaucrats (who, yes do make mistakes) and are more likely to have old information. Here is an example http://exim.indiamart.com/act-regulations/fera-1993.html. Guess what? This act has been repealed, so the poor people who read this like Femaonline, would not be aware of the 182 day rule, for example.

The good thing about this forum (and I'm not saying that it is perfect) is that if I put something up that is wrong (eg OCI = Dual Citizenship), then you or someone else can tear it down! The same does not apply to non govt privately published sites.

 

[sg_orl]

Hi Mangal and PIO1,
Is it 6-8 weeks from the time I sent in my application (w/photos, etc..) or 6-8 weeks from now???? If it's 6-8 weeks from the time I sent in my OCI app, then it's already been 4 weeks, and I'm planning to go in the 1st week fo June. But, my question is, if I'm in India, and they send the sticker, etc..... here to CGINY, in NYC, then what do I do??? Could it wait here till I adopt and then come back (maybe 4-5 months)??? - Nobody was willing to even answer questions, other than saying it'll be 8-10 weeks at CGINY. And my neighbor who applied in 1st week of Feb, still has not gotten it. So, if I take a visa, can I go to the Indian Consulate in India and get my sticker put on?? How do I tell that now and to whom????
Thanks,

If you get an email from the Consulate to send your passport for the OCI sticker by the third week of May, then go with the OCI and travel to India with it. Otherwise get a 6 mos visa to travel, which you can even get it in person on the same day. Consulate will inform you later when the OCI process is done and will ask you to send the passport for the U visa sticker. At that time you can resond to them that you are away and are travelling, and let them know to either hold on to the U visa sticker until you come back or if they can advise you to take care of it in MHA in Delhi.

OCI will NOT help you with the adoption process in India. CARA has recently made a change in one of their rules which would allow the NRI families with at least one holding spouse holding an Indian passport to get the same preference as an Indian familiy living in India. I have not seen this updated on the CARA's website as of yet, but some are reporting on the adoption message boards that Indian agencies and VCAs have received the updated rules from CARA. This updated rule does not help if both husband and wife are either PIOs or OCIs with foreign passports. CARA may address that in future. I don't know at what stage fo the adoption process you are at, but if you going for the court process and to complete the adoption process to bring the baby home, then 2-3 months of stay would be sufficient. If you're at an earlier stages of adoption, then it's hard to determine how long you may have to stay in India to complete the process.

Good luck!

 

[basis]

That's where the difference is. Most countries have a taxpayers charter or similar. Common law cases around the world (am sure there must be something in India) have shown that if a person has taken due care to understand a law, and a reasonable person would draw an understanding of it, then they can not be held to have intentionally broken it, and should not be penalised (they may need to pay back taxes, but will not get a penalty). Material published by governments including websites has special significance and come under official communication provisions, and can be brought before courts even if they have disclaimers.

So if the RBI or IT publishes wrong stuff (and yes, the RBI's FAQs have small errors too that I can share with you) you can more successfully argue that you took due care.

Personally my experience shows that the magnitude of errors you get on Govt sites and private ones are at other ends of the spectrum.

Also private sites are not answerable to anyone, not subject to updating, and not being poured over by dilligent bureaucrats (who, yes do make mistakes) and are more likely to have old information. Here is an example http://exim.indiamart.com/act-regulations/fera-1993.html. Guess what? This act has been repealed, so the poor people who read this like Femaonline, would not be aware of the 182 day rule, for example.

The good thing about this forum (and I'm not saying that it is perfect) is that if I put something up that is wrong (eg OCI = Dual Citizenship), then you or someone else can tear it down! The same does not apply to non govt privately published sites.

I for one would never advise someone to read RBI / Tax website, interprete on their own and take any serious action. To say Indian Govt websites contain less errors than private websites take a lot of courage. And shows one has been away from India for a long long time.

PIO1 - I agree that one should not rely on websites to take serious decisions. I have never said that till now. But to say that they are blatantly wrong, created with mal-intentions is not only disrespectful but show lack of gratitude towards people who spend time and effort to raise such information. OK they may be not comprhensive, have left room for interpretation but does not mean that they are completely wrong. As you said even RBI site has mistakes. And no one can win a case refering to information on RBI website if the information there is erroneous. RBI has clearly said that.

Neither you, nor me or anyone on this forum are truly qualified to make judegements on the content in the website including that in RBI website. It takes years to become a legal expert specially when it comes to acts like FERA / FEMA / IT Act. I have studied them as student and can tell you that they are not as easy to read website content and interprete and apply. Ask any CA / CS (qualified professional or student) in India and they will tell us with a big sigh on how difficult these laws are when it comes to interpretations etc. RBI issues at least few notifications under FEMA every week - almost all FEMA sections start with a phrase 'subject to notifications issued by competent authority' etc. To keep pace with these and link them with plethora of case laws, myriads of provisions in the Acts and numerous interpretations is not given to common man - not atleast in India.

And in an attempt to prove all sites other than RBI wrong PLEASE dont say things which are not correct. Who told you 'femaonline' is not aware of 182 days rule. Read carefully the definitions given by them. They have not included that in defining NRI simply because when defining Resident in India there is a strong view and practice (also supported by RBI in communication to me) that one becomes resident in India from the day one arrives in India provided 'intention test' is met.

In short my views are -
a) any info on web - be it here, RBI or any other site should be used at user's risk. For serious decisions better to consult with experts. Dont take medicines in serious ailments or while dealing with delicate organs based on website contents even if it is NHS (UK Govt Health Dept site). Better to be safe than sorry.

b) There are many who have made genuine attempt to provide information over the web as much as possible - they may not be accurate. Dont be paranoid about it. Take pointers from that but do consult experts (real experts not experts on a forum like this) before you act. Remember nothing comes free.

c) there is no guarantee that of I or PIO1 or someone else puts a wrong info on this forum it will be necessarily always be pointed out by others. So use the info / opinions / experiences shared on this forum with a pinch of salt.

I would say this is fair. If someone still thinks one can read RBI / IT sites and go to courts and prove things based on that then one would love risk taking. I rest my case ....my lord (oops no more allowed in India).

 

[basis]

FEMA is what you can invest in, and Income Tax is how much tax you pay. They are two separate things.

This is very true.

FEMA as the name suggests is an act to deal with Foreign Exchange Management related regulations.

Apart from giving definitions of significant terms it also provides regulations related to following topics -

7.1 Borrowing or Lending in Forex
7.2 Borrowing or Lending in Rupees
7.3 Branch or Office in India
7.4 Capital account transactions
7.5 Currency
7.6 Deposits
7.7 Derivative contracts
7.8 Export - import in forex

7.9 Export of goods and services
7.10 Forex accounts by resident person
7.11 Guarantees
7.12 Immovable property in India
7.13 Immovable property
7.14 Insurance
7.15 Investment in firm or proprietorship in India
7.16 Possession & retention of forex
7.17 Postal order and money orders
7.18 Realisation, repatriation or surrender of forex
7.19 Receipt & payment
7.20 Receipt from or payment to non-resident
7.21 Remittance of assets
7.22 Rupee transactions with Nepalese and Bhutanese
7.23 Security Issue by person resident outside India
7.24 Transfer or issue by non-resident
7.25 Transfer or issue of foreign security

Bank Accounts for Non-Resident Indians
Foreign Exchange Facilities for Residents
Doing Business in India
Regulation & Management of Foreign Exchange
Contravention and penalties
Adjudication and appeal
Miscellaneous
RBI notifications

And practically for all purposes other than taxation definition under FEMA is used when terms Resident in India, Resident outside India and Non Resident Indian are used.

Income Tax provides among other things for Residential Status, what's taxable income as per residential status and tax calculation accordingly.

This is interesting: If you settle in India, even if you are a foreigner (e.g. US National, not of Indian origin), you are treated like a resident by FEMA and Income Tax!!! They don't care about your visa etc.

There are other things you can't do but a foreigner can have a farm and a PAN card if they settle in India!

FEMA defines Resident in India and Resident Outside India. Nationality / Visa etc does not matter. Once we digest this then everything else falls in place.

This is similar in case of many other countries. e.g in the UK residents whether UK citizens or not are given concession in college fees, medical treatment, ISA investment etc. UK citizens if not resident in the UK aren't allowed these.

OCI and PIO have no bearing on tax, but they can help procedurally with FEMA investments. Even then, if you don't have a PIO or OCI card, I think you can argue successfully that you are a "person of Indian origin" in the FEMA sense if you can prove you were once Indian, or your father or your father's father was Indian at one point.

OCI and PIO card dont have an impact on tax. But PIO status does have. Essentially OCI / PIO card holders and also PIOs otherwise are treated as non-resident Indians.

Section 2 of the Income Tax Act does not define 'NRI'. However, for Chapter XIIA, Non Resident Indian has been defined as an individual being a citizen of India or a person of Indian origin who is not a resident. A person is considered to be of Indian Origin if he or either of his parents or his grand parents was born in undivided India.

So PIOs (whether holding PIO cards/ OCI or none) Resident Outside India are treated as NRI and enjoy special exemptions under IT Act e.g. interest on certain accounts / securities etc.

OCI / PIO card is not required under FEMA to prove that one is Person of Indian Origin. What's important is to pass the tests of PIO definition under applicable regulations. Remember PIO is defined differently under FEMA deposits regulations and FEMA immoveable properties regulations.

182 days does effect you. Even with/without PIO/OCI, you are a resident under FEMA IT if you hit this number. "Resident" under IT and "Person Resident in India" under FEMA. So what does PIO/OCI give a resident of India? Not much - the same rights as a foreigner without visa and registration hassles.

Correct. One minor correction though -

if you hit this number. "Resident" under IT and provided you also pass the intention of stay test "Person Resident in India" under FEMA

Very true that PIO card / OCI dont give much compared to the noise made about it by various GOI agencies / ministries.

PIO / OCI gives different rights e.g. employment / stay in India without a visa, admission to Indian educational institutions under NRI quota etc which are not covered by FEMA.

 

[sv2707]

Why OCI for Adoption?

I have seen it mentioned that OCI is needed for adoption. Why?