The two terms which we frequently found in our day to day life that are NRI & PIO but most of us do not know what is the difference between two so I am going to explain the definition of the two
A(NRI) Non-Resident Indian is 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.
A (PIO) Person of Indian Origin is a person of Indian origin but who is not a citizen of India. The person is the citizen of another country. Or A PIO might have been a citizen of India and subsequently taken the citizenship of another country.
Legal definitions
Non-resident Indian (NRI)
Strictly speaking, the term non-resident refers only for the purpose of the tax status. As per section 6 of the Income-tax Act of 1961, a person has not resided in India for a specified period for the purposes of the Income Tax. The rates of income tax are different for persons who are "resident in India" and for NRIs. For the purposes of the Income Tax Act, "residence in India" requires stay in India of at least 182 days in a calendar year or 365 days spread out over four consecutive years. According to the act, any Indian citizen who does not meet the criteria as a "resident of India" is a non-resident of India and is treated as NRI for paying income tax.
Person of Indian origin (PIO)
Government of India considers anyone of Indian origin up to four generations to be as PIO, with the exception of those who were ever nationals of Afghanistan, Bangladesh, Bhutan, Nepal, Pakistan, or Sri Lanka.
The prohibited list periodically includes China and Iran as well. The government issues a PIO Card to a PIO after verification of his or her origin and this card entitles a PIO to enter India without a visa. The spouse of a PIO can also be issued a PIO card though the spouse might not be a PIO.
A(NRI) Non-Resident Indian is 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.
A (PIO) Person of Indian Origin is a person of Indian origin but who is not a citizen of India. The person is the citizen of another country. Or A PIO might have been a citizen of India and subsequently taken the citizenship of another country.
Legal definitions
Non-resident Indian (NRI)
Strictly speaking, the term non-resident refers only for the purpose of the tax status. As per section 6 of the Income-tax Act of 1961, a person has not resided in India for a specified period for the purposes of the Income Tax. The rates of income tax are different for persons who are "resident in India" and for NRIs. For the purposes of the Income Tax Act, "residence in India" requires stay in India of at least 182 days in a calendar year or 365 days spread out over four consecutive years. According to the act, any Indian citizen who does not meet the criteria as a "resident of India" is a non-resident of India and is treated as NRI for paying income tax.
Person of Indian origin (PIO)
Government of India considers anyone of Indian origin up to four generations to be as PIO, with the exception of those who were ever nationals of Afghanistan, Bangladesh, Bhutan, Nepal, Pakistan, or Sri Lanka.
The prohibited list periodically includes China and Iran as well. The government issues a PIO Card to a PIO after verification of his or her origin and this card entitles a PIO to enter India without a visa. The spouse of a PIO can also be issued a PIO card though the spouse might not be a PIO.
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