Difference Between NRI and PIO - PIO vs NRI

By K Balaji|Updated : January 27th, 2023

The key difference between NRI and PIO is that the income of the NRI is not taxable in India, whereas the income of the PIO is included in the taxation process. NRI and PIO are short abbreviations for Non-Resident Indian and Persons of Indian Origin, respectively. Both the terms NRI and PIO are used to describe people of having birth in India but reside outside the republic of India.

Difference Between NRI and PIO PDF

NRI has the right to participate in elections and hold a post in public centres, whereas PIO is not eligible to vote during elections and cannot hold a post in public centres. The NRI and PIO are often used interchangeably in place of each other but mean two very different things. Read the difference Between NRI and PIO based on various aspects and understand them.

Table of Content

Difference Between NRI and PIO

The major difference between NRI and PIO is that PIO citizens are considered PIO even if they are not born in India, but for NRI citizens, it is essential for them to be born in India. Let us examine the essential points of Difference Between NRI and PIO below.

PIO vs NRI

Difference Between NRI and PIO

Non-Resident Indian (NRI)

Person Of Indian Origin (PIO)

A non-resident Indian is a person born in India or carries a descent of Indian land but currently resides in a location outside India.

Also referred to as Overseas Indians, a person of Indian origin is a holder of an Indian passport, is a child or a grandchild to people who are Indians, or is a spouse to a person who is either a PIO or an Indian.

A person must be born in India to be labelled as an NRI.

A PIO need not have taken birth on Indian soil but must have parents born in India.

Voting rights are given to an NRI.

A PIO does not carry any voting rights.

An NRI can hold a public office.

A PIO is not eligible to hold public office in India.

An NRI does not need permission to visit a restricted area in the country.

A PIO needs permission from the Foreign Regional Registration Office to visit any specific areas in the country if they are restricted.

NRI and PIO

NRI and PIO are the people who may not be living in India but have some relations with the country. It is important to know that Bangladesh and Pakistan-residing citizens are not considered PIO. The Citizenship Amendment Bill 2015 changed the policies for the tax on the income of PIO citizens.

Who is NRI?

An NRI is a person who is an Indian but resides outside the country in any other nation. Lawfully, they are Indian citizens but not in the country. Even then, they are protected by the laws of the Government of India and enjoy the basic rights of every citizen of India.

  • The basic criteria for the NRI are that the citizen who is not staying in India for 183 days in a year for 4 continuous years is living in other countries other than India.
  • It is important to know that the NRI citizens can cast their vote in the election.

Who is PIO?

A PIO, on the other hand, is a person who belongs to another country but has held an Indian passport at any point in time or whose parents or grandparents were born in India at any time, or a person who is a spouse to a person who is a citizen of India.

  • The PIO citizens have Indian citizenship.
  • They are issued with the PIO card, which remains valid for 15 years.
  • During these years, they can study, work, travel, etc., in India as per their choice.
  • The Foreign Regional Registration Office grants permission to PIO citizens.

Summary:

Key Difference Between NRI and PIO

The key Difference Between NRI and PIO is that NRI stands for Non-Resident Indian who is a resident in a foreign country, whereas PIO stands for Person of Indian Origin allocated to foreign citizens, except for those belonging to Afghanistan, Bangladesh, Bhutan, China, Iran, Nepal, Pakistan, and Sri Lanka.

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FAQs on Difference Between NRI and PIO

  • The Difference Between NRI and PIO regarding holding a card is that An NRI does not get any card to acknowledge their resident status, but a PIO gets a card due to which they do not require a visa to enter India, and such a cardholder also does not need to carry a student or employment visa before they can approach any employment opportunities in the country. When entering India, a PIO can access separate immigration counters designated for them.

  • NRI full form is Non-Resident Indian, and PIO full form is Person of Indian Origin. Both the terms NRI and PIO are used to describe people of having birth in India but reside outside the republic of India. NRI and PIO are often used interchangeably in place of each other.

  • The Difference Between NRI and PIO in terms of an NRI account is that Certain benefits accrue to an NRI through an account that allows them to manage their money even when they are outside India, and it is easier to open such accounts through which they can also make several investments in market-linked assets.

  • An NRI is a person who is an Indian but lives outside his or her country in any other nation. NRI is a citizen who is not staying in India for 183 days yearly for 4 straight years and is residing in any other nation other than India.

  • The PIOs are Indian citizens who have Indian passports and have close relatives in India, whereas the NRIs are citizens who have been living outside the country for more than 183 days per financial year. PIOs can be considered NRI if they meet the criteria for the NRI candidates and do not have the PIO card.

  • The Difference Between NRI and PIO regarding their stay in India is that An NRI should have stayed in India for a minimum span of 60 days or more during a year or a period of more than 365 days in the four years preceding the date of the current financial year.

    On the other hand, a PIO is allowed to stay in India for 180 days without needing a registration with the Foreign Regional Registration Office (FRRO).

  • PIOs are citizens who have Indian citizenship. They own a PIO card, which stays valid for 15 years. These individuals belong to another country but have had an Indian passport at any time. The Foreign Regional Registration Office gives consent to PIO citizens.

  • With respect to the Difference Between NRI and PIO, Even as foreign investors, an NRI and a PIO can invest in deposits, repatriation, immovable properties, the transmission of inheritance, housing loans, and more.

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