A Power of Attorney (POA) is a legal instrument that enables a person (Principal) to grant another individual (Attorney or Agent) the authority to act on their behalf for certain legal, financial, or property-related issues. This is particularly helpful for Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) who have to take care of matters in India while living abroad.

Why Do NRIs & OCIs Need a Power of Attorney?

NRIs and OCIs can need a POA for the following reasons:

✔ Property Management: Purchase, sale, leasing, or holding property in India.

✔ Financial Transactions: Managing bank accounts, signing cheques, or investing.

✔ Tax & Legal Issues: Filing income tax returns, dealing with legal cases, or representing in court.

✔ Business Operations: Authorizing an individual to operate a business or sign agreements in India.

As NRIs and OCIs are not physically able to be in India for every transaction, allowing POA sees to it that their affairs go on smoothly. 

How to Create a Power of Attorney for NRIs & OCIs 

NRIs and OCIs may create a POA from outside India by completing the following procedures:

Step 1: Write the POA Document

• Include the Principal's and Agent's information (name, address, passport number details).
• Define the powers conferred (general or specific).
• State the period of validity (if any).
• Two witnesses' signatures are to be obtained.

Step 2: Notarization & Attestation (For NRIs & OCIs)

• Have the POA notarized by a Notary Public of the country of residence.
• Go to the Indian Embassy or Consulate to obtain the POA attested.

Step 3: Sending the POA to India

• Mail the attested POA to India through courier.
• The agent in India is to obtain the document adjudicated at the Sub-Registrar's Office.

Overseas Citizens of India (OCI) card holders may sell Indian property, but this is subject to regulation under the Foreign Exchange Management Act (FEMA). OCI holders are free to sell commercial and residential property, but sales of agricultural land, plantation property, and farmhouses are restricted and may only be sold to Indian citizens. Tax payments and repatriation regulations need to be adhered to in foreign remittance.

Important Rules for Property Sale in India:

1. FEMA Rules

• Every sale of property by an OCI cardholder in India is governed by the Foreign Exchange Management Act (FEMA).
• FEMA regulates how the sale proceeds may be used and repatriated to a foreign bank account.

2. Eligible Buyers

• OCI cardholders are eligible to sell residential and commercial properties to:
• Indian nationals
• Other OCI cardholders
• Non-Resident Indians (NRIs)

3. Restricted Sales of Property

• Farmhouses, plantation properties, and agricultural land may not be sold to another OCI or NRI.
• These properties could only be sold to Indian citizens according to Indian property regulations.

4. Capital Gains Tax Liability

• OCI cardholders who are selling property in India have the liability to pay Capital Gains Tax based on how long they have held the property:
• Short-Term Capital Gains (STCG): If they have held the property for less than 2 years, the gains are taxed at the individual's relevant income tax rate.
• Long-Term Capital Gains (LTCG): If the holding period is above 2 years, the profits are taxed at 20% with indexation advantage.

5. Power of Attorney for Selling Property

• OCI cardholders can either sell their property on their own or through Power of Attorney (PoA).
• If the vendor is overseas, they can also appoint a person of trust in India to settle the sale.
• Sale documents need to be signed, notarized, and mailed to India for processing.

6. Repatriation of Funds

• The sale proceeds may be repatriated abroad by the OCI card holder subject to RBI guidelines.
• As much as USD 1 million during one financial year may be repatriated properly documented.

7. Legal Documentation

• Valid sale deed, property title, and tax clearance certificates should be in hand to effectuate the sale.
• Advisory opinion of an attorney would keep one abidant by the Indian law relating to the properties.

An incomplete surname on an Indian passport can cause major inconvenience to Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in the matter of visa applications, immigration, banking, and official documents while abroad. Most Indians possess passports where only a first name is mentioned, and there is no surname. Though this is okay in India, most foreign nations need both a first name and surname for official documents.

How Do Foreign Authorities Treat a Missing Surname?

If there is no surname on an Indian passport, foreign authorities write the name in varying manners:

FNU (First Name Unknown) Format

• Where the passport indicates only "Rajesh" as the full name, the authorities may enter it as:
• First Name: FNU
• Surname: Rajesh

LN (Last Name) as Given Name Format

• A few countries move the given name to the surname field:
• First Name: (Blank or "XXX")
• Surname: Rajesh

These discrepancies can create problems in official documents, and therefore it is important to rectify the passport prior to encountering problems overseas.

An NRI (Non-Resident Indian) is an Indian who lives abroad for employment, business, studies, or any other reason that shows an indefinite foreign stay. As per the Indian Income Tax Act, any individual who stays in India for less than 182 days during a financial year will be considered an NRI. The Foreign Exchange Management Act (FEMA) also classifies NRIs for investment and financial purposes, subjecting them to particular banking and property ownership regulations.

Major NRI Eligibility Criteria:

1. Stay Duration

• If one stays in India for less than 182 days during a financial year, one is considered an NRI under the Income Tax laws.
• Under FEMA, NRI status is intent- and purpose-based residence and not merely days spent abroad.

2. Employment or Business Abroad

• Individuals employed or engaged in business outside India, even though they possess an Indian passport, are treated as NRIs.

3. Students Studying Abroad

• Indian students residing abroad for education for more than 182 days in a financial year are categorized as NRIs.

4. Foreign Nationals of Indian Origin

• Foreigners born in India but who have gained foreign citizenship are not NRIs; they can be eligible for OCI (Overseas Citizen of India) status, however.

Non-Resident Indians (NRIs) enjoy a number of rights in India, which enable them to stay connected to the nation despite being abroad. Although they do not enjoy the same benefits as Indian citizens in some respects, they have rights pertaining to property ownership, business, banking, investments, and legal safeguards. NRIs, however, have to adhere to rules under the Foreign Exchange Management Act (FEMA) and other Indian laws.

Important Rights of NRIs in India:

1. Rights of Property Ownership

• NRIs are entitled to owning residential and commercial property in India.
• They can't purchase agriculture land, farmhouses, or plantation property, but they can inherit them.

2. Right to vote

• NRIs with Indian citizenship can cast their votes in Indian elections.
• They have to be physically present within their registered constituency on the day of voting.
• NRIs can't cast their votes for local or state elections from any other place.

3. Business & Investment Rights

• NRIs are allowed to open businesses, invest in Indian share markets, and keep fixed deposits in Indian banks in special NRE/NRO/FCNR accounts.
• They can invest in real estate, mutual funds, and government securities as per FEMA guidelines.

4. Taxation Rights & Obligations

• NRIs are taxed only on the income generated in India (for example, rent income, capital gains, or business income).
• They can take advantage of Double Taxation Avoidance Agreements (DTAA) if India has an agreement with their home country.

5. Education & Employment Rights

• The NRIs and children of NRIs can seek admission in Indian institutions of higher studies and can apply for special reservations in certain universities.
• They are eligible to take private sector jobs but not governmental posts or apply for civil service jobs.

6. Legal & Inheritance Rights

• NRIs are entitled to inherit wealth, assets, and property from Indian kin.
• They can pursue cases and receive justice in Indian courts and legal systems.

7. Banking & Financial Rights

• NRIs may operate Non-Resident External (NRE), Non-Resident Ordinary (NRO), and Foreign Currency Non-Resident (FCNR) bank accounts in India.
• They may repatriate money overseas, but there are restrictions based on the account type.

An NRI has to pay tax in India on income received in India. Income received outside India is not taxable for NRIs unless they are Residents under the Indian tax laws. The tax liabilities of an NRI are mainly regulated by the Income Tax Act, 1961, and their residential status in a financial year decides the rules of taxation that apply to them.

Major Tax Duties of NRIs:

1. Income Tax on Indian Income

• NRIs are required to pay tax on income received or earned in India, including rental income, capital gains from selling property, fixed deposit interest, and dividends.
• Tax rates applicable to NRIs are identical to resident Indians based on income bands.

2. Exemptions on Overseas Income

• Income received abroad is not to be taxed in India unless the NRI becomes a resident if the duration of their stay extends. 

3. Capital Gains Tax on Property

• In case the NRI disposes of property in India, Capital Gains Tax is paid based on the period of holding:
• Short-Term Capital Gains (STCG): Where the property has been held for less than 2 years, the tax is imposed according to the relevant income tax slab.
• Long-Term Capital Gains (LTCG): In case the property is held for over 2 years, a 20% tax with indexation advantage is levied.

4. Double Taxation Avoidance Agreement (DTAA)

• India has DTAA arrangements with most nations to avoid taxation of NRIs twice on a single income. NRIs may claim relief under these agreements through the submission of a Tax Residency Certificate (TRC) issued by the resident country.

5. Filing Income Tax Returns (ITR)

• NRIs need to file an ITR in India if they have a taxable income of over ₹2.5 lakh a year or income from property or investments in terms of capital gains.
• The deadline for submitting ITR is July 31st of every assessment year.

Passport renewal is necessary for NRIs (Non-Resident Indians) to have valid documents for travel and residency when residing abroad. Indian passports held by NRIs need to be renewed before they expire to prevent legal and travel issues. Renewal is distinct from obtaining a fresh passport and has to be conducted through the Indian embassy or consulate in the country of residence of the NRI.

When to Renew the Passport of an NRI

• Prior to Expiry: One should apply for renewal at least 6 months prior to expiry.
• Damaged, Lost or Stolen Passport: If passport is lost, stolen or damaged, it must be renewed.
• Change in Personal Details: If name, spouse's name, address, or appearance has undergone a change, the passport has to be renewed.
• Exhausted Pages: If all pages in the passport are used, a new passport needs to be issued.

How to Renew an Indian Passport for NRIs?

The renewal process for an NRI passport involves the following steps:

• Visit the Official Portal – Go to the website of the Indian Mission (Embassy/Consulate) in the country of residence. Some NRIs can apply via the Passport Seva website.
• Fill Out the Online Application – Fill up the renewal form and upload necessary documents.
• Book an Appointment – Fix an appointment for document verification and biometrics at the local Indian Embassy/Consulate or VFS Global centre.
• Submit Required Documents – Bring the original passport and necessary documents to the embassy on the appointed day.
• Pay Renewal Fees – Varies per country and relies on the pages of the new passport (36 or 60 pages).
• Track Application Status – Utilize the tracking system of the concerned embassy or VFS Global to monitor the progress.
• Get the Renewed Passport – The renewed passport is generally sent by courier or may be picked up from the embassy. The processing would normally take 2 to 6 weeks, depending on the nation and embassy volume.

Documents Needed for NRI Passport Renewal

• Original current Indian passport and photocopy of the first and last pages.
• Valid visa, residence permit, or Green Card of the host country.
• Recent passport photos according to embassy specifications.
• Evidence of residence in the foreign state (utility bill, lease document, or bank statement).
• In case, evidence of a change of name, addition of spouse's name, or change of address.
• Police report (where the passport has been lost or stolen).

An NRI can lawfully purchase, own, inherit, and sell property in India according to the rules prescribed by the Foreign Exchange Management Act (FEMA). There are certain rules and limitations that the NRI needs to adhere to while handling property in India.

Important Rules for NRIs Who Own Property in India:

1. Types of Property that NRIs Can Purchase

• NRIs are allowed to buy residential and commercial properties in India without a special license.
• There is no limit on the number of properties that an NRI can hold.

2. Restrictions on Agricultural and Farm Land

• NRIs are not allowed to acquire agricultural land, plantation property, or farmhouse in India.
• But they are allowed to receive these properties by way of gift or inheritance from resident Indian relatives.

3. Funding for Property Purchase

• NRIs are able to finance property acquisition in India from their NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts.
• Indian banks extend home loans to NRIs but require repayment via NRE/NRO accounts or inward remittances.

4. Renting Out Property in India

• NRIs can rent out their properties and receive rental income in their NRO account.
• The tenant must deduct 30% TDS before transferring rent to the NRI’s account.

5. Inheritance and Gifting of Property

• NRIs may inherit property from Indian citizens, resident NRIs, or fellow NRIs.
• They may gift their property to resident Indians or fellow NRIs, but they may have taxation implications.

Non-Resident Indian (NRI) children enjoy certain rights and advantages in India and can keep in touch with their native country easily. Although NRI children stay outside India, they are covered by different laws, educational schemes, property right entitlements, and other forms of benefits through Indian law. Their rights essentially vary based on their citizenship, i.e., whether they carry an Indian passport, an OCI (Overseas Citizen of India) card, or hold foreign citizenship.

Benefits of NRI Kids in India:

Rights of Education:

• NRI and OCI kids are allowed to study in India under reserved admission quotas in schools and universities.
• Several institutions, such as IITs and medical colleges, have reserved NRI/OCI seats.
• They might be asked to pay a higher fee than Indian citizens.

Rights of Property:

• Indian passport holders are free to purchase and inherit property in India.
• OCI cardholders can buy residential and commercial properties but not agricultural land or farmhouses.
• NRI children can inherit property from parents or relatives.

Financial Rights:

• Indian passport holders can open and maintain normal bank accounts in India.
• OCI cardholders can open NRE (Non-Resident External), NRO (Non-Resident Ordinary), and FCNR (Foreign Currency Non-Resident) accounts.
• They can invest in Indian mutual funds, shares, and real estate as per RBI rules.

Healthcare and Medical Benefits:

• NRI children are eligible to receive healthcare facilities in India, including private hospitals.
• They are not eligible for government-sponsored health schemes meant for Indian residents.

Voting and Political Rights:

• Indian passport holders are eligible to vote in Indian elections once they attain the age of majority.
• OCI cardholders are not eligible to vote, stand for elections, or take up government employment in India.

A Permanent Account Number (PAN) Card is a very important document for Non-Resident Indians (NRIs) who carry out financial transactions or investments in India. It is given by the Income Tax Department of India and must be obtained for taxation purposes, banking, and investment. Although NRIs are not liable to pay tax in India on their worldwide income, they must obtain a PAN card for financial operations in India.

Reasons Why NRIs Require a PAN Card

• Filing of Income Tax: If an NRI earns income taxable in India (salary, rent, capital gains, etc.), a PAN card is required to file income tax returns.

• Investment in India: NRIs making investment in mutual funds, stocks, or bonds require a PAN card under SEBI rules. It is required for opening a Demat and trading account with Indian stock brokers.

• Property Transactions: A PAN card is necessary to purchase, sell, or lease property in India, so that the tax deductions on rental income or capital gains can be made properly.

• Opening an NRI Bank Account: Although some banks do not require a PAN card to open an NRE/NRO account, it is necessary for financial transactions such as fixed deposits and remittances.

• Business & Entrepreneurship: NRIs who intend to start a business or invest in an Indian company need to have a PAN card for tax purposes and registrations.