No relevant search results found.
Language
Thank you for sharing your details. To receive a call from Tata AIA Financial Advisor.
reCAPTCHA is not working.
Call us
FOR EXISTING POLICY
FOR NEW POLICY
NRI vs OCI: All you need to know!
NRI vs OCI: All you need to know!
NRI vs OCI
In this fast-paced global world, as people spread their wings across borders, a distinct categorization of individuals based on their residential status is fundamental to every country!
In this regard, Non-resident Indians (NRIs) and Overseas Citizens of India (OCIs) are the most common categories of individuals. Understanding their meaning, eligibility, and differences will help gain clarity on the residential status and applicable rights. We have untangled the difference between NRI and OCI to navigate their unique identities and applicable benefits within the legal status. So, here is everything you need to know about NRI vs OCI.
Looking to buy a new insurance plan?
Our experts are happy to help you!
Success
Who Is a Non-Resident Indian (NRI)?
Understanding the definition of NRIs based on their residential status and the advantages and disadvantages will help better relate the difference between OCI and NRI.
A Non-Resident Indian (NRI) is an individual who is not a resident of India based on the following conditions as defined in Section 6 of the Income Tax Act 1961. An individual will be referred to as a Resident in India for the previous year if they satisfy the following conditions:
If they were residing in India for 182 days or more in the previous year or
If they were residing in India for 60 days or more in the previous year and 365 days or more for 4 years immediately preceding the said previous year.
And if the individual does not satisfy the conditions listed above, they will be called a Non-Resident Indian for the previous year.
Here are a few other specific considerations:
If an Indian citizen or a Person of Indian Origin (PIO) has visited India during the year, the considered 60 days in the list above will be substituted with 182 days. Further, the same condition applies to an Indian citizen who leaves India for employment abroad or as a crew member.
According to an amendment in the Finance Act 2021-22, for an Indian citizen or a Person of Indian Origin (PIO), if the total income other than the income from foreign sources is ₹15 Lakhs in the concerned previous year, the above mentioned 60 days will be substituted with 120 days.
Further, the Finance Act 2020 introduced a new provision, Section 6(1A), that an Indian citizen earning more than ₹15 Lakhs (other than the income from foreign sources) will be deemed to be a Resident in India if they are not liable to paying tax in any other country. It is a provision applicable from the Assessment Year 2021-22.
Life Insurance for NRIs
Term Plans
A term insurance plan is a protection plan, that provides coverage against uncertainties of Life. In case of unfortunate death of the life assured, the nominee will receive a lumpsum amount to secure their future. Get a free quote and take a step towards protecting your loved ones.
A Non-Linked Non-Participating Individual Life Insurance Plan (UIN:110N160V03)
Tata AIA
Sampoorna Raksha Supreme
Our best-selling term insurance plan that will provide you life insurance cover till 100 years of your age^ and also you can get your premium amount back~.
Savings Plans
A savings plan will provide your guaranteed returns on your investment. You can fulfil your life goals by creating a corpus ensuring peace of mind and secure a financially stable future.
Non-Linked, Non-Participating, Individual Life Insurance Savings Plan (UIN: 110N158V10)
Tata AIA
Fortune Guarantee Plus
Check our Best Selling Guaranteed Return Insurance Plan that assures you guaranteed* tax# free income and return of premium% on policy maturity.
Wealth Creation
Wealth creation plans primarily focus on long-term capital appreciation, thus offering you market linked returns to generate a corpus.
In this policy, the investment risk in investment portfolio is borne by the policyholder.
Unit Linked Individual Life Insurance Savings Plan (UIN:110L112V04)
Tata AIA
Fortune Pro
Get additional income my investing in our top rated funds$ to grow your wealth.
Retirement Plans
Retirement plans provide the advantage of disciplined saving and investing, ensuring a sufficient corpus to maintain a comfortable lifestyle after retirement.
A Non-Linked, Non-Participating, Annuity Plan (UIN:110N161V06)
Tata AIA
Fortune Guarantee Pension
Secure your golden years with Tata AIA Fortune Guarantee Pension. It provides your guaranteed@ tax# free income. Multiple options are available in this plan: Immediate Life Annuity | Immediate Life Annuity with Return of Purchase Price| Deferred Life Annuity (GA-I) and with Return of Purchase Price| Deferred Life Annuity (GA-II) and with Return of Purchase Price. | @T&C apply.
Can NRIs Purchase Life Insurance Policies in India?
NRIs can purchase life insurance policies from anywhere. Here are the details:
While In India: Life insurance policy can be purchased in India easily through quick, digital process.
When outside India: NRI can purchase the life insurance policy online from their current place of residence subject to our Board approved underwriting policy.
Advantages And Disadvantages of Being An NRI
Advantages |
Disadvantages |
NRIs can vote in Indian elections. |
Income from salary for services rendered in India and any other income earned within India is taxable. |
NRIs can purchase life insurance plans and health insurance plans and invest in financial securities, bonds, ELSS, etc. |
NRIs cannot open a PPF account (They could continue to invest if they had their PPF accounts opened when they were resident Indians). Further, they cannot invest in the National Savings Scheme (NSCs), Senior Citizen Savings Scheme (SCSS), and 5-year Post Office Deposit Scheme. |
The Indian education system provides special reservations for NRIs and their children. |
NRIs will not have the citizenship of their country of residence, and if applicable, it is a lengthy and complicated process. |
-
![]()
Who Is an Overseas Citizen of India (OCI)?
The primary difference between NRI and OCI is based on their citizenship. An Overseas Citizen of India (OCI) is a foreign citizen of Indian origin. They are authorized to live or work in India for an indefinite period. According to Section 7A of The Citizenship Act 1955, an individual who is a foreign citizen can register as an Overseas Citizen of India cardholder.
In 2005, the Government of India introduced a scheme to issue OCI cards based on The Citizenship (Amendment) Act of 2005. According to this scheme, eligible candidates can apply for OCI cards and stay and live in India indefinitely.
The Constitution of India does not allow the option for an Indian citizen to hold dual citizenship. Therefore, to meet the demands of Indians insisting on dual citizenship, this alternative of having the OCI card and the related benefits were introduced.
Eligibility For an OCI Card
A foreign national is eligible for the OCI card if any of the following conditions are satisfied:
If they were a citizen of India on or after 26th January 1950
If they were eligible to become a citizen of India on 26th January 1950
If they belonged to a territory that further became a part of India after 15th August 1947
If they are a child, grandchild, or great-grandchild of such a citizen listed above.
If they are a minor child of such a citizen listed above, or
If they are a minor child whose parents or one of the parents is a citizen of India.
Here are a few other considerations:
A spouse of foreign origin of an Indian citizen or OCI cardholder whose marriage has been registered and subsisted for a continuous period for at least 2 years immediately preceding the application for the OCI card is also eligible.
No individual who or their parents, grandparents, or great-grandparents had been a citizen of Bangladesh, Pakistan, or any other country notified by the Central Government in the Official Gazette shall be eligible for the OCI card.
Foreign nationals cannot apply for the OCI card while on Mountaineering Visa, Tourist Visa, or Missionary Visa.
Sales Enquiry
Advantages And Disadvantages of Being An OCI
Advantages |
Disadvantages |
OCI cardholders can benefit from a multiple-entry, multi-purpose life-long visa to visit India. They can stay and work in India indefinitely. |
An OCI is not allowed to purchase agricultural land in India, they can inherit farmland |
No special approval is required for the OCI to stay and work in India. |
An OCI cannot vote or participate in Indian elections. |
The OCI is not required to register with the local police for any length of stay. |
An OCI cannot apply for a government job in India |
Educational and financial benefits to the OCI are as applicable to an NRI. |
|
Difference Between NRI And ORI
NRI vs OCI |
||
Factors |
NRI |
OCI |
Eligibility |
The individual will be called a Non-Resident Indian for the previous year if they do not satisfy the following conditions:
Further, there are a few other applicable considerations, as discussed above. |
A foreign national is eligible for the OCI card if any of the following conditions are satisfied:
Further, there are a few other considerations, as discussed above. |
Application |
There is no specific application process to become an NRI. |
Applicable individuals can apply for the OCI card on the Online OCI Services web portal. They must follow the instructions, provide the required information, and pay the applicable fees. |
Investment options |
NRIs can invest in varied financial investment options such as equity, mutual funds, Government securities, etc. Also, they can own residential or commercial properties. |
OCI card holders can invest in varied financial investment options, including equity, mutual funds, Government securities, etc. Also, they can own residential or commercial properties but not agricultural property unless inherited. |
Applicability regarding the residence in India |
182 days or less in a year |
OCI cardholders can work and stay in India indefinitely. |
Documents required |
As there is no application process, no specific documents are required. However, overseas residential proof might be required in some scenarios. |
Some of the important documents required for OCI card application are as follows:
|
Bank Accounts for NRI And OCI
NRIs and OCIs can open the following bank accounts in India:
-
![]()
Non-Resident External (NRE) Account
NRE account can be opened in India for depositing income earned outside India. The currency deposit is from foreign currency, and the withdrawal is in Indian currency.
The funds deposited and the interest earned is fully repatriable. Also, the interest earned is tax-exempt. It is suitable for individuals who want to invest their foreign earnings in India which is fully repatriable.
-
![]()
Non-Resident Ordinary (NRO) Account
NRO account can be opened in India for the income that an individual earns in India. The currency deposit and withdrawal are in Indian rupees.
The deposited funds are repatriable to the account holder's country of residence based on the applicable limits and compliance. Further, the interest earned is taxable as per the applicable TDS rate under section 195 of Indian Income Tax Act, 1961.
-
![]()
Foreign Currency Non-Resident (FCNR) Account
FCNR account is opened in India for depositing the earnings made in a foreign currency in an Indian account.
The currency deposit is in specific currencies such as SGD, AUD, USD, CAD, etc., and the withdrawal is in foreign currency. It can be used by the NRIs or OCIs to handle their spending and investment-related issues in different countries outside India.
The funds deposited and the interest earned is fully repatriable. Also, the interest earned is tax-exempt.
Looking to buy a new insurance plan?
Our experts are happy to help you!
Success
Frequently Asked Questions About NRI vs OCI
What is the basic difference between OCI and NRI?
OCI stands for Overseas Citizen of India, a status given to foreign nationals of Indian origin that provides the right to stay and work in India indefinitely.
On the other hand, NRI refers to a Non-Resident Indian who resides outside India for employment, business, or any other purpose. It can be for a temporary duration.
The basic difference between NRI and OCI is that NRIs will continue to have their Indian citizenship, and the OCIs will have their respective citizenship based on the country of their origin.
Can an OCI live permanently in India?
Yes, OCI cardholders can stay and work in India indefinitely. Individuals with the OCI card can have a lifelong multiple-entry visa. It allows them to enter and exit India hassle-free without any restrictions.
Do OCI cardholders need to pay Income Tax in India?
Yes, OCI cardholders are subject to taxation based on their residential status for the concerned year.
An individual will be referred to as a Resident in India for the previous year if they satisfy the following conditions.
If they were residing in India for 182 days or more in the previous year or
If they were residing in India for 60 days or more in the previous year and 365 days or more for 4 years immediately preceding the said previous year.
Therefore, the OCI will be a Resident of India based on their residential status. Further, for taxation purposes, they must determine whether they are Resident Ordinarily Residents (ROR) or Resident but Not Ordinarily Residents (RNOR).
RORs are taxable for their global income in India. On the other hand, RNORs are liable for paying tax on income arising or accruing in India, income received or deemed to be received in India, or income deemed to accrue or arise in India. Further, it applies to the income that arises or accrues outside India from a professional set-up or business controlled in India.
Can an OCI and NRI own a residential property in India?
Yes, both NRIs and OCIs can purchase and own residential properties in India. Further, there are no restrictions on the number of properties they can own. However, OCIs cannot purchase and own agricultural land unless they inherit such properties from their family.
Can an OCI and NRI apply for an Aadhaar Card in India?
Aadhaar Card enrolment is applicable to the residents of India. NRIs, although they are Indian citizens, cannot enroll for the Aadhaar card if they have not stayed in India for more than 182 days in the 12 months preceding the date of application for the enrolment for the Aadhaar card.
And OCI cardholders who have stayed in India for over 182 days in the 12 months immediately preceding the date of application for the enrolment and have an Indian address can apply for the Aadhaar Card.
Can an OCI open a resident bank account in India?
Yes, OCIs are allowed to open resident bank accounts in India. However, foreign students studying in India and foreign tourists on short visas to India are not permitted to open resident accounts in India.
Disclaimer
The complete name of Tata AIA Sampoorna Raksha Supreme is Tata AIA Life Insurance Sampoorna Raksha Supreme (UIN:110N160V03) - A Non-Linked Non-Participating Individual Life Insurance Plan.
The complete name of Tata AIA Fortune Pro is Tata AIA Life Insurance Fortune Pro (UIN: 110L112V04) - Unit Linked Individual Life Insurance Savings Plan.
The complete name of Tata AIA Fortune Guarantee Plus is Tata AIA Life Insurance Fortune Guarantee Plus (UIN: 110N158V10) - Non-Linked, Non-Participating, Individual Life Insurance Savings Plan.
The complete name of Tata AIA Fortune Guarantee Pension Plan is Tata AIA Life Insurance Fortune Guarantee Pension Plan (UIN:110N161V04) - A Non-Linked Non-Participating Individual Life Insurance Plan
^Applicable for specific plan options. Please refer brochure for additional details.
~Under Life Plus Option, an amount equal to the 105% of the Total Premiums Paid (excluding loading for modal premiums) shall be payable at the end of the Policy Term, provided the life assured survives till maturity and the policy is not terminated earlier.
*“Guaranteed Annual Income” shall be a fixed percentage of the Annualised Premium / Single Premium (excluding discount) payable in a year. Guaranteed Annual Income as per the chosen Income Frequency shall commence after maturity till the end of the Income Period, irrespective of survival of the life insured(s) during the Income Period.
#Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implication mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
%Return of Premium shall be the return of Total Premiums Paid (excluding loading for modal premiums, discount, any extra premium, rider premium and taxes) by the policyholder and shall be payable at the end of the Income Period irrespective of survival of the life insured(s) during the Income Period.
$All funds open for new business which have completed 5 years since inception are rated 4 or 5 stars by Morningstar on a 5 year basis as of Mar’2023
@The word Guaranteed and Guarantee means the annuity payout is fixed at inception of the policy and will be payable for whole of life or till death of the Annuitant(s).
Tata AIA Life Insurance Company underwrite this product Ltd.
The plan is not a guaranteed issuance plan, and it will be subject to company’s underwriting and acceptance.
Insurance cover is available under this product.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.
Buying a Life Insurance Policy is a long-term commitment. An early termination of the Policy usually involves high costs, and the Surrender Value payable may be less than the all the Premiums Paid.
In case of non-standard lives and on submission of non-standard age proof, extra premiums will be charged as per our underwriting guidelines.
Risk cover commences along with policy commencement for all lives, including minor lives.
Policies sourced through PoS Channel will not have any medical examination. This plan is not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
All Premiums and interest payable under the policy are exclusive of the taxes, rider premiums, underwriting extra premiums, loading for modal premiums, if any which will be entirely borne/ paid by the Policyholder, in addition to the payment of such Premium or interest. Tata AIA Life shall have the right to claim, deduct, adjust, and recover the amount of any applicable tax or imposition, levied by any statutory or administrative body, from the benefits payable under the Policy.
Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policy holder will not be able to surrender/ withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year.
Tata AIA Life Insurance Company Limited is only the name of the Insurance Company & Tata AIA Life Insurance Fortune Pro is only the name of the Unit Linked Life Insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
The fund is managed by Tata AIA Life Insurance Company Ltd.
For more details on risk factors, terms and conditions please read Sales Brochure carefully before concluding a sale. The precise terms and condition of this plan are specified in the Policy Contract.
Past performance is not indicative of future performance. Returns are calculated on an absolute basis for a period of less than (or equal to) a year, with reinvestment of dividends (if any).
All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.
Please make your own independent decision after consulting your financial or other professional advisor.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. Please know the associated risks and the applicable charges, from your Insurance Agent or Intermediary or Policy Document issued by the Insurance Company.
Various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. The underlying Fund's NAV will be affected by interest rates and the performance of the underlying stocks.
The performance of the managed portfolios and funds is not guaranteed, and the value may increase or decrease in accordance with the future experience of the managed portfolios and funds.
Premium paid in the Unit Linked Life Insurance Policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the Insured is responsible for his/her decisions.
Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the Insurance Company.
Insurance cover is available under the product.
The products are underwritten by Tata AIA Life Insurance Company Ltd.
The plans are not a guaranteed issuance plan, and it will be subject to Company’s underwriting and acceptance.
For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale.
L&C/Advt/2023/Jul/2319
New user? Our experts are happy to help.
TATA AIA Life Insurance Co. Ltd will send you updates on your policy, new products & services, insurance solutions or related information. Select here to opt-in
Thank you for sharing your details.
Our representative will contact you soon.
