Under the Foreign Exchange Management Act (FEMA),students who go to other countries for the purpose of studying are treated as NRIs. These students can avail several banking facilities,similar to what are provided to NRIs. For an NRI,however,the process to open an account is different from that of an Indian citizen.
People also ask
What are the conditions for studying abroad as an NRI?
The below-mentioned conditions are not from the perspective of students studying abroad only, but in general, and applies to all NRIs. First of all, if you are an NRI as per FEMA you are not allowed to keep Savings bank account or Resident fixed deposits in the bank.
What is the difference between NRI and NRI student?
NRI is an Indian citizen who has migrated to another country, a person of Indian origin who is born outside India, or a person of Indian origin who resides permanently outside India. A student who has studied 5 years including 11th and 12th in abroad then he is also called NRI student.
What are the IT Act rules for NRIs who are working abroad?
One who is going abroad for employment may not fall into IT act rules for NRIs immediately, but he/she has to follow the FEMA guidelines and Open the NRE/NRO accounts, Inform the Depository participants, Mutual fund houses etc. about the changed status to be on the right side of law always.
Can a person be an NRI under the Income Tax Act?
So at a given point in time, a person can be an NRI as per FEMA but not under the Income Tax Act. When you transfer money from one country to another, you檙e likely to face taxation twice ?once in the source country and again in the home country.