A person who doesn’t fall any of the two category mentioned below is deemed to be a NON RESIDENT INDIAN :

1. The person has been in India for a period of 182 days or more (or)
2. He has been in India for a period of 60 or more days during the previous year &
365 or more days during the 4 years immediately preceding the previous year.

As per above, the term Non-Resident has been aplly designed to include :

a) Non resident of Indian nationality
b) Non resident of foreign citizens

The Non-Resident foreign citizens can be of both, Indian Origin or of Non-Indian Origin.
A person is deemed to be a person of Indian origin if :

1. He has held an Indian passport at any time (or)
2. He / either of his parents / either of his grandparents was / were a citizen of India
(as defined by the Constitution of India or by the Citizenship Act, 1955) (or)
3. He / she is married to a person of Indian Origin
(this doesn’t apply to citizens of Pakistan or Bangladesh)

For Example:

• Mr. Sandhu, who was once an Indian citizen, is now a citizen of Canada. He is an NRI.
  
• Mr.Sandhu is married to Mrs. Hilary who is an American.
  Here, Mrs.Hilary Sandhu becomes an NRI.
  
• Mrs. & Mr.Sandhu are blessed with 4 children - 3 sons and a daughter.
  All the children of Mr.Sandhu are NRIs.
  
• Mani Sandhu, the eldest son of Mr.Sandhu married Ms. Manjot, a Pakistani national.
  Mrs. Manjot Sandhu is not an NRI.
  
• Jagjit Sandhu, the second son of Mr.Sandhu, married an UK Citizen, Ms.Suzy.
  Mrs. Suzy Sandhu is now an NRI.
  
• Jaspreet Sandhu, Mr.Sandhu's daugther married Kenny, an Belgian citizen.
  Kenny now becomes an NRI.
  
• Jass Sandhu, Mr.Sandhu's youngest son, moves to Bangladesh and becomes a citizen there.
  
• Jass Sandhu now loses his NRI status.

Generally the stay of NRI's outside India is for an uncertain period. If a person has gone out of India for any of the following reasons, he is not a NRI:
1. for medical treatment
2. for higher studies
3. for business tour

For example:
Harmeet, an Indian citizen who has gone to Canada for business purpose.
As per Income Tax Law, he will be treated as an Indian Resident and not as an NRI.