is a non-resident Indian?
A: An Indian citizen
who stays abroad for employment/carrying on business or
vocation outside India or stays abroad under circumstances
indicating an intention for an uncertain duration of stay
abroad is a non-resident. (Persons posted in UN organisations
and officials deputed abroad by Central/state governments
and public sector undertakings on temporary assignments
are also treated as non-residents). Non-resident foreign
citizens of Indian origin are treated on par with non-resident
Indian citizens (NRIs).
Que. Who is a person of Indian origin?
A:For investments in
immovable properties A foreign citizen (other than a citizen
of Pakistan, Bangladesh, Afghanistan, China, Iran, Bhutan,
Sri Lanka, or Nepal) is deemed to be of Indian origin if,
(i) he held an Indian passport at any time, or (ii) he or
his father or paternal grand-father was a citizen of India
by virtue of the Constitution of India or the Citizenship
Act, 1955 (57 of 1955).
Que: What is an OCB?
A: Overseas Corporate
Bodies (OCBs) are bodies predominantly owned by individuals
of Indian nationality or origin resident outside India and
include overseas companies, partnership firms, societies
and other corporate bodies which are owned, directly or
indirectly, to the extent of atleast 60 per cent by individuals
of Indian nationality or origin resident outside India as
also overseas trusts in which atleast 60 per cent of the
beneficial interest is irrevocably held by such persons.
Such ownership interest should be actually held by them
and not in the capacity as ~ nominees. The various facilities
granted to NRIs are also available with certain exceptions
to OCBs so long as the ownership/beneficial interest held
in them by NRIs continues to be atleast 60 per cent.
Que: Are OCBs required to produce any certificate
regarding ownership/ beneficial interest in them by NRIs?
A: Yes. In order to
establish that the ownership/beneficial interest in any
OCB held by NRIs is not less than 60 per cent, the concerned
body/trust is required to furnish a certificate from an
overseas auditor/chartered accountant/certified public accountant
in form OAC where the ownership/beneficial interest is directly
held by NRIs, and in form OAC 1 where it is held indirectly
by NRIs and further that such ownership interest is actually
held by them and not in the capacity as nominees.