Introduction:
The world has become an urban village and more and more people are traveling to other foreign countries to find better education, jobs, opportunities, etc. In doing so the number of international migrants has eventually increased. India being part of the global village, does have a lot of NRIs staying in foreign countries. According to the UN Department of Economic and Social Affairs, India is the largest country of origin of international migrants with a 17.5 million-strong diaspora across the world.[1]
Being a country with huge international migrant count, it is obvious that we have a huge population of people staying abroad and having origin here. But there are a lot of issues that these NRIs face in our countries and as well as in their resident foreign countries. This paper aims to discuss what are some of the rights of NRIs in India and despite these rights what problems they face.
To understand the rights international migrants have, we must be familiar with the concept of NRI and PIO. It is discussed below in brief:
- Non-Resident Indian (NRI): refers to a citizen of India who holds an Indian passport and has temporarily emigrated to another country for six months or more for employment, residence, education, or any other purpose.
- Person of Indian Origin (PIO): refers to a person of Indian origin or ancestors but who is not a citizen of India and is the citizen of another country. A PIO can also be referred to a person who has been a citizen of India and subsequently taken the citizenship of another country, or have ancestors born in India.
So to explain in simpler terms or layman’s language an NRI is an Indian Citizen, who stays abroad for employment, education, business, or vacation. Any person holding an Indian passport and is staying outside India for more than total, not necessarily continuous, 182 days in a financial year is an NRI. Even those people who are work for in the United Nations and its organizations/office or deput abroad by the central, state governments, and public sector undertakings or on temporary assignments are also NRIs. The NRIs become Indian residents only when they come back to the country for employment, education, vacation, any other purpose indicating indefinite stay.
Rights of NRI’s in India
The non-resident Indians even though living outside the country have certain rights associated with this country. Some of these rights which are considered to be major and most concerning rights are discussed below:
Voting Rights:
The right to vote is something that is grant to every citizen of the country. But what if the citizen does not stay in the country for a longer period? The NRIs were barred from voting if they remain outside India for six months for whatsoever reasons.[2] But later, NRIs were provided voting rights and right to get their name register in the electoral roll. Under the Representation of People’s (Amendment) Act, 2010. However, This act required the NRIs to be physically present in their constituencies to cast their votes.[3]
Property Rights:
Property rights are grant under various provisions of the Foreign Exchange Management Act (FEMA). As well as the Income Tax Act, which applies to the inheritance of immovable property. Its continued ownership by NRIs or PIOs. For example, A non-resident Indian (NRI) or a person of Indian origin (PIO). It can inherit any immovable property in India, whether it is residential or commercial. They can even inherit agricultural land or a farmhouse; which they are otherwise not entitle to acquire by way of purchase.
Financial Rights:
NRI or not, every individual must file a tax return if their income is more than INR 2,50,000. But it is to be note that NRIs are only tax for income earned/collected in India. Apart from this, there are various tax benefits and deduction from income, etc. That NRIs are grant by the Indian government. For example, NRIs are provide with tax benefits if their children are studying in any institute situate in India. (this is only limit to 2 children).
Apart from these major rights mentioned above, which are consider to be a major concern for NRIs. There are other rights as well which are granted to NRIs but are not mention in the paper.
Problems faced by NRI’s in India
Once we are familiar with the rights that are grant to NRIs. We must discuss what are the problems that they face:
Even though the NRIs have voting rights in Indian elections. There is no provision in people’s representation act for absentee voting. Some people are interest in electing their country representatives. But can’t as it is not feasible for them to just come to the country; for elections or during election times and return to their residence. There are bizarre condition which would not offer a practical solution to the manner of affecting the voting rights of NRIs.
NRI’s who are staying abroad i.e. outside Indian boundaries, often invest in real estate in India. The problem arises when people take advantage of the innocent people who are unaware of the country. The FEM act controls all the real estate dealings by NRIs. NRIs invest in and purchase residential and commercial properties only in India. No agricultural land or farmland could be purchase by an NRI as per their property rights. Many devious people take unfair advantage of lack of knowledge of the NRIs. Sell them farmlands and agricultural lands which is void.[4]
There are NRIs who want to conduct business in India is their point of origin. But there are various problems that our laws put forth some of these are mentioned below:
- No single/alone person can form a company:
With the implementation of Companies Act, 2013, a new concept of one person company has come in practice. But there is certain restriction i.e. one person should be a resident Indian. NRIs and PIOs are not eligible for forming this type of limited company in India. As they are not the residents.
- Need of Indian resident:
The Companies Act, 2013 permits NRIs, PIOs, Foreign Nationals, and Foreign Residents to act as directors of an Indian Company. Only when there is an Indian resident in the panel.
- Notarization of documents from Indian Embassy:
While the commencement of a company, the first step is to get the Digital Signature Certificates of the proposed directors. Then apply for Directors’ Identification Number. In all these cases, the ID and address proofs of propose directors or other persons are need. In the case of NRIs, clear instructions have been issue by the government. That if the present address of the NRIs is outside India then each document of the person should be notarized from the Indian embassy of the country; where the person presently resides. This makes the process a lot of cumbersome, time-consuming, and difficult.
- Non-availability of address proof for registered office:
For the registered office of the company, the electricity bill, property tax receipt, gas bill, NOC from the owner will be needed. At the start, when an NRI or PIO plans to open up a company in India he/she does not have a registered office address proof; which creates problems in completing the formalities.
All these results in creating problems for the NRIs and PIOs to conduct business openly in our country.
NRIs often invest their money back home. These remittances from NRIs, helps the country to bridge the foreign exchange deficit caused by our unchecked love for gold. However, the income tax department creates many hurdles in taxing the remittances; made to Indian Non-Resident External accounts on technical grounds. While some NRIs have access to professional advice and can avoid these, most others are caught.
Almost all Overseas Citizens of India (OCI) and Persons of Indian Origin (PIO); applicants face difficulties in obtaining documentation of showing that they are of Indian origin. This leads to delay in processing applications, many applicants are denied OCI registration due to lack of proofs only.
Anti-Dowry laws were made for the betterment of the lives of the women who have face abuse and cruelty from there husbands. It is often observe that this law is being use as a weapon by women to exploit innocent non-resident Indian husbands. A lot of cases have emerge where it can be seen that the women misuse this law to extort money from the innocent NRI husbands. This also stands as a major problem against the NRIs and PIOs as once a complaint is file in a country it becomes difficult for them to go back to their resident country apart from the defamation that causes through these cases.
Apart from anti-dowry cases it is also observe that people get forced into arrange marriages and in the cases of NRIs it’s even more prevalent because of family pressure to marry in the same caste, religion, etc. whether it might be the choice of their child or not, sometimes these marriages work and sometimes they don’t and eventually lead to the dissolution of marriage through divorce. However, getting a divorce which is recognize under Indian Laws, while sitting abroad can be very challenging without the right legal representation and support in India.
Conclusion
Concluding the entire article, it can be said that the Non-resident Indians and persons of Indian origin are those people who are citizens of the country but reside outside the geographical boundaries of India. Like every citizen, they are grant certain rights, but due to change/difference in residence, their rights are subject to certain conditions and are not completely similar to those of that of citizens who are residing in the geographical boundaries of India.
Being a non-resident these people have to face certain challenges which a normal resident won’t face. The article specifies some of these problems or issues faced by them. It’s not there is no solution to these problems, there are solutions to these problems but are beyond the scope of this article. All these exploitations of NRIs and all these problems can only be dealt with if they are more aware and have more knowledge about the field they are attempting to go in.
References:
[1] Data retrieved from: https://www.myadvo.in/blog/Legal-Guide-for-NRIs/.
[2] Section 19 of the Representation of the People’s Act, 1950.
[3] Section 20 (A) of the Representation of the People’s (Amendment) Act, 2010.
[4] Data retrieved from: https://www.myadvo.in/blog/Legal-Guide-for-NRIs/.
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