Indian Citizenship Act and Overseas Citizen of India (OCI) scheme Rules: An Overview

Today we will discuss about the rules and regulations in India on citizenship as well as the Overseas Citizenship Scheme launched by the Government in 2005.

Citizenship and Tax Residency are 2 different things

First things first, let us understand that as per Indian law, citizenship is different from tax residency. While the former is regulated by the Citizenship Act, 1961, the latter is regulated by Income Tax Act, 1961. I have written a separate post on tax residential status, please read it here

You can refer to the following links to download the relevant regulations on Ministry of Home Affairs website here. Below I am trying to present the provisions of Indian Citizenship Act in an easy to read manner.

Does a person need to apply for citizenship in India?

No. A person can continue as a foreign citizen and reside in India provided the person has valid passport and other travel documents as prescribed under the Passport and Foreigners Act and does not remain in India beyond the permitted period.

A person who does not confirm to the above conditions is termed as “illegal migrant” under Section 2(b) of the Citizenship Act

What are the different ways of acquiring Indian citizenship?

 There are primarily 4 different ways given to acquire citizenship as follows:

  • By Birth
  • By Descent
  • By Registration
  • By Naturalisation

Detailed provisions are given in the respective sections of the Act, however a brief commentary is given below.

Citizenship by birth

In case of citizenship by birth, a person automatically becomes an Indian citizen by birth.

Citizenship by descent

Citizenship by descent applies where though a person is born outside India, but there is some connection of the person with India wr.t. Either one or both parents being Indian citizens or themselves a citizen by descent.

Citizenship by descent applies to a person born outside India who fulfils any of the following conditions:

  1. On or after the 26th January, 1950, but before the commencement of the citizenship (Amendment) Act, 1992, shall be a citizen of India by descent if his father is a citizen of India at the time of his birth; or
  2. On or after, such commencement, shall be a citizen of India by descent if either of his parents is a citizen of India at the time of his birth

 Provided that if the father of such a person was a citizen of India by descent only, that person shall not be a citizen of India by virtue of, this section unless-

  1. His birth is registered at an Indian consulate within one year of its occurrence or the commencement of this Act, whichever is later, or, with the permission of the Central Government, after the expiry of the said period; or
  2. His father is, at the time of his birth, in service under a Government in India.

Provided further that if either of the parents of such a person referred to in clause (b) was a citizen of India by descent only, that person shall, not be a citizen of India by virtue of this section, unless-

  1. His birth is registered at an Indian consulate within one year of its occurrence or the commencement of the Citizenship (Amendment) Act, 1992, whichever is later, or with the permission of the Central Government, after the expiry of the said period; or
  2. Either of his parents is, at the time of his birth, in service under a Government in India.

Citizenship by registration

In case of citizenship by registration, a person who fulfils the conditions of stay in India can apply for an Indian citizenship. The procedure is that one has to apply in the prescribed format to the District Collector/Magistrate of the area along with the prescribed fee. In such case, person has to also take an oath of allegiance to the Constitution of India.

Following persons can apply for citizenship under this section:

  • Persons of Indian origin who are ordinarily resident in India for seven years before making an application
  • Persons of Indian origin who are ordinarily resident in any country or place outside undivided India;
  • Persons who are, or have been, married at citizens of India and are ordinarily resident in India and have been so resident for seven years immediately before making an application for registration;
  • Minor children of persons who are citizens of India;
  • Persons of full age and capacity whose parents are registered as citizens of India
  • Persons of full age and capacity who have been registered as overseas citizen of India (OCI) for 5 years, and who has been residing in India for one year before making an application for registration

Citizenship by naturalisation

Case of citizenship by naturalisation arises in where the Central Government is of the opinion that the person has done distinguished work in the direction of art, science etc. and the person qualifies for the conditions listed in Schedule 3 of the Act. Even here, an application has to be made in the prescribed format.

Overseas Citizenship Scheme

 This is a facility introduced by Citizenship Amendment Act of 2005 where a person who obtains foreign citizenship can still register himself as an overseas citizen of India (OCI). However, please note that the Constitution of India does not permit dual citizenship. Hence, holding an OCI does not mean that a person holds citizenship of India in addition to foreign country. Once an OCI wants to become an Indian citizen, he has to formally apply under “citizenship by registration” and has to also confirm that once he gets Indian citizenship, he will renounce the foreign citizenship.

Following is the extract from the Ministry of Overseas Indian Affairs on OCI scheme (link). Details of all notifications for OCI issued by the Ministry can be found here

The OCI documents consist of OCI Registration Booklet and a Universal visa sticker. It is mandatory for registered OCIs to carry their passports which carry the Universal visa sticker for entry into / exit from India.

A registered Overseas Citizen of India is granted multiple entry, multipurpose, life-long visa for visiting India, he/she is exempted from registration with Foreign Regional Registration Officer or Foreign Registration Officer for any length of stay in India, and is entitled to general ‘parity with Non-Resident Indians in respect of all facilities available to them in economic, financial and educational fields except in matters relating to the acquisition of agricultural or plantation properties’. Specific benefits/parity is notified by the Ministry from time to time.

The Ministry has issued notifications granting registered OCIs further benefits as under:

  1. Parity with Non-Resident Indians in the matter of inter-country adoption of Indian children ;
  2. Parity with resident Indian nationals in matters of tariffs in domestic air fares ;
  3. Parity with domestic Indian visitors in respect of entry fee for visiting national parks and wildlife sanctuaries in India ;
  4. Parity with non-resident Indians in respect of:
    1. Entry fees for visiting the national monuments, historical sites and museums in India;
    2. Practicing the following professions in India, in pursuance of the provisions contained in the relevant Acts, namely:
      • Doctors, dentists, nurses and pharmacists;
      • Advocates;
      • Architects; and
      • Chartered Accountants; and
  5. Entitlement to appear for the All India Pre-Medical Test or such other tests to make them eligible for admission in pursuance of the provisions contained in the relevant Acts.

It may be noted that an OCI enjoys all rights as a citizen of India except some that have been expressly mentioned in Section 7B of the Act like registration as a voter, holding a public office, etc.

Renouncing Indian Citizenship/OCI status

Section 7C states that an OCI can renounce his OCI status by making a declaration in writing in prescribed format & procedure.

Similarly, Section 8 says that a person can terminate his Indian citizenship by submitting a declaration which shall be registered with prescribed authority. The section further says that where a person ceases to be a citizen of India, every minor child of such a person also ceases to be so. However, the child has an option to resume Indian citizenship after attaining full age by applying within one year.

Section 9 categorically provides that as and when a person acquires a citizenship of a foreign country, he automatically ceases to be a citizen of India.

Some useful links on OCI scheme are given below:

Some important points to note if you are a foreign citizen/ PIO/OCI:

  • If you have applied for Indian citizenship, DO NOT renounce your foreign citizenship till you acquire Indian citizenship.
  • If you are a foreign citizen living in India (not an OCI), comply with the rules applicable to foreigners like having a residence permit, proper passport, visa, registration with FRRO. If your stay period is getting over, renew the same but don’t risk staying longer as you can end up in trouble.
  • If you are an OCI travelling to India, carry your passport with U Visa sticker and OCI card to avoid problems at immigration counter. If you have obtained new passport and have not applied for new sticker, do not forget to carry your old passport along with you.
  • Effective Jan 2015, the PIO scheme is withdrawn and all existing PIO are merged into OCI scheme. I’m not sure though whether the PIO holders have to apply afresh for OCI or their PIO cards are deemed to be OCI.

Copyright © CA Abhinav Gulechha. All Rights Reserved. No part of this article can be reproduced without prior written permission of the CA Abhinav Gulechha. The content of the article is for general information purposes only & does not constitute professional advice. For any feedback, please write to  contact@abhinavgulechha.com


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