An Indian abroad is popularly known as an NRI - a Non Resident Indian. But the NRI jargon in Government corridors is -''Now Required Indian'', for an Indian abroad it is ''Newly Respected Indian'', but for many harassed visitors it is ''Never Return to India''.

The term non-resident is negatively defined under section 6 of the Income-tax Act. An individual who is not a resident under the Income-tax Act is a non-resident (generally, termed NRI). Thus, one should know the definition of a resident and if he is not a resident then he is a non-resident.
The status of a person as a resident or non-resident depends on his period of stay in India. The period of stay is counted in number of days for each financial year beginning from 1st April to 31st March (known as previous year under the Income-tax Act). The definition is explained in simple terms as under.

BASIC CONDITIONS AT A GLANCE
In the case of an Indian Citizen who leaves India during the previous year for the purpose of employment or, in the case of an Indian Citizen who leaves India during the previous year as a member of the crew of an Indian Ship.	In the case of an Indian Citizen or a person of Indian Origin (who is abroad) who comes to India on a visit during the previous year.	In the case of an Individual other than an individual mentioned in columns (1) and (2)
(1)	(2)	(3)
Presence for at least 182 days in India during the Previous Year. Not functional.	Presence for at least 182 days in India during the Previous Year. Not functional.	Presence for at least 182 days in India during the Previous Year. Presence in India for at least 60 days during the previous year and 365 days during 4 years immediately preceding the previous year.

ADDITIONAL CONDITIONS AT A GLANCE

Resident in India in at least 2 out of 10 years immediately preceding the previous year (or must satisfy at least one of the basic conditions, in 9 out of 10 immediately preceding previous years). Presence of at least 730 days in India during 7 years immediately preceding the previous year.

Resident and Not Ordinarily Resident	Non - Resident
Must satisfy at least one of the basic conditions and both of the additional conditions [i.e. one of (a) and (b) and both of (i) and (ii)]	Must satisfy at least one of the basic conditions and one of none of the additional conditions [i.e. one of (a) and (b) and one or none of (i) and (ii)]	Should not satisfy any of the basic conditions

RESIDENTIAL STATUS IN WHICH TAX INCIDENCE IS LOWEST
The tax incidence is the lowest in the case of the 'non-residents', which is indicated by the comparative chart given below :-

Nature of Receipt or Income	Non-resident	Resident	Not-ordinarily resident
# Income received in India whether accrued in India or outside India.	Yes	Yes	Yes
# Income deemed to be received in India whether accrued in India or outside India.	Yes	Yes	Yes
# Income accruing or arising in India whether received in India or outside India.	Yes	Yes	Yes
# Income deemed to accrue or arise in India whether received in India or outside India.	Yes	Yes	Yes
# Income received and accrued outside India from a business controlled from India or a profession set up in India.	No	Yes	Yes
# Income received and accrued outside India from a business controlled from outside India or a profession set up outside India.	No	Yes	No
# Income (not being from a bu-siness and accrued outside India.	No	Yes	No

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LIFE INSURANCE SCHEMES:
Life Insurance Corporation has various schemes, designed for women other than general schemes applicable to all.
Rebate on Tax is available on LIC premia paid by an individual, on her life or on the life of her spouse or, on the life of her child (including adult children and a married daughter) is deductible from Gross total income U/S 80C. Other Popular Tax Savings Schemes are also available for this Rebate which has been explained in detail in Plan My Tax.

Following are highlights of certain Schemes available for Married Women and for a Couple.
RELIEF IN CASE OF DOUBLE TAXATION
When a taxpayer who is resident in one country derives income from a source in another country and the income so derived is taxed at both places, i.e., the country of the residence of the taxpayer as well as in the country of source of income is Double taxation.To avoid double taxation of income, the Government of India has entered into bilateral comprehensive agreements with a number of countries.
Besides, India has entered into agreements which cover only limited areas of activities like aircraft and shipping. For example, Agreements with Afghanistan, Australia, Ethiopia, Iran, Kuwait, Lebanon, Oman, Pakistan, PDR Yemen, Switzerland, UAE and Yemen AR are in respect of taxation of profits from operation of aircraft and with Bulgaria of profits from Shipping only.
In case there is no agreement for the avoidance of double taxation with any country, unilateral relief may be granted.

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Methods for granting relief in case, double taxation avoidance agreement exists :
There are two methods of granting relief under bilateral arrangement :
a) Method of exclusion :
Under this, the income which according to source rule arises in one country is not taxed in the other country, though it can be taken into account for purpose of determining the rates of tax.

b) Method of tax credit :
Under this, the income is taxed in both the countries in accordance with their respective tax laws read with the bilateral tax agreements. However, the country of residence of taxpayer allows him credit for the tax charged thereon in the country of source against the tax charged on such income in the country of residence. Credit may also cover tax that would have been paid but for certain tax incentives.

Fundamentally, the difference between the exemption system and the credit system is that the exemption system looks at income and the credit system looks at tax on income.

Unilateral Relief :
Unilateral relief granted on incomes which have suffered tax both in India and in the country with which there is no agreement for the avoidance of double taxation Unilateral relief is granted in such cases, but it is available only to the "resident" taxpayers. Such relief is worked out as under:-

i)	The amount of doubly taxed income is first ascertained. This consists of such income of "resident" tax-payer as has accrued or arisen to him in a foreign country and been subjected to income-tax in that country as well as in India. It does not include income which is deemed to have accrued or arisen to the tax-payer in India even though it has been charged to income-tax in a foreign country.
ii)	On the amount of doubly taxed income so ascertained the income-tax is calculated at :
	a.	The Indian rate of tax; and
	b.	The rate of tax of the foreign country.
iii)	Relief is granted by allowing to the taxpayer a deduc­tion from the tax chargeable on his total income of an amount equal to the tax calculated at the Indian rate of tax or the amount of tax calculated at the rate of tax of the other country, whichever is lower.

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