Blog Details

Author - Associate Nupur Mehrotra

NRI (non-resident of India) is defined as a person who is born in India but lives abroad either for education purpose or for any business reason and also the time period of coming back is uncertain. Also, there are Indian citizens who work with the organizations like United Nation Organizations, World Bank, etc tend to stay outside India, the officials of the Central and  State government who are given to work abroad are regarded as NRI. The residential Status is determined either under the Income Tax Act, 1961 or Foreign Exchange Regulation Act, 1973 (FERA). In case of the Income Tax Act, 1961, the status is given on the basis of the number of days he stays in India but in the case of FERA, the status is determined on the basis of the intention of the person to stay in India or outside India. Income tax Act section 6 gives the definition for NRI and Section 2(p) and 2(q) gives the definition for NRI.

There are few rights which are given to the non-resident of India and are known as NRI rights. Few rights given to the NRI are discussed below-

• Section 19 of People’s Act, 1950 did not allow the NRIs to vote if they have been outside India for more than six months ignoring the circumstance in which they may be. After the 2010 Amendment, they were given the right to vote. But, Representation of People’s Act section 20(A) made the physical appearance compulsory to cast vote. These two conditions had deeply affected the voting rights of the non-resident of India. After looking at the population of 3.10 crore people living outside India it made the government frame rules for voting. The Representation of the People (Amendment) Bill, 2017 has been introduced by Law and Justice Minister Ravi Shankar Prasad in Lok Sabha on 18^th December 2017. This Amendment Bill has introduced the concept of ‘proxy voting’ and ‘gender neutral’.

This Bill has been introduced to ensure that the Indians who reside outside India and cannot travel to cast their vote can still exercise their Right. This Bill will allow the NRIs to vote through proxies in their constituency. The bill has also introduced a gender-neutral concept by replacing the term ‘wife’ with ‘spouse’. Once this bill is passed it would surely make the voting system easier and available to all NRIs.

Now, it is also important to understand who qualifies for the NRI voting right. It is important to note that one qualifies for this right only if the person is an Indian and not the citizen of the other country he/she is residing in, in short, the presence of valid Indian passport is compulsory. Also, the age of the person should be at least 18 years on January 1^st for the year when the electoral roll is published.

• Any immovable property can be inherited by NRI in India. Also, there are no restrictions on inheriting the commercial or residential property. The agricultural land or any farmhouse of the relative or any family member can be inherited by the NRI.
• The NRI can also make investments in the mutual funds, real estate and also in other industries following the legal regulations under the Foreign Exchange Management Act.  A general form has to be filled and signed by the NRI mentioning the method of payment for making the investment in any mutual fund.
• Non-resident of India under section 2 (v) of FEMA, 1999 can also buy immovable property in India with the approval of the concerned authority but it is important to note that the payment has to be done only in India currency and the foreign currency will not be accepted as payment for the property.

Impact of the given rights- 

The NRI community is already being considered by the government as well as political parties. Different departments have been set up in states like Telangana and Andhra Pradesh to look after all the problems of NRI. Online voter registration for the NRIs who are eligible to vote has been initiated by ECI.

There are so many people who are residing outside India because of various reasons. Some either go abroad due to a job opportunity, job postings, etc. This does not give others the rights to take away the rights of those people. There are people who love their motherland and want to return as soon as possible. We need to consider all the situations and give the NRIs the basic rights that they deserve. Right to vote is the most essential right of any human because every Indian vote counts. Therefore, it is very important to ensure that people living outside India are able to exercise their rights.