## Concept of PNPR – Person Resident in India but NOT Permanently Resident

A special category recognised under the FEM (Current Account) Rules. A PNPR enjoys a relaxation – he may remit his entire net salary abroad without being constrained by the LRS USD 2,50,000 cap.

### Who is a PNPR?

A person is a PNPR if he resides in India for employment or a specific job/assignment for a duration of NOT exceeding 3 years.

### Conditions to Avail the PNPR Facility

The person must be:

1. A citizen of a foreign state (other than Pakistan), OR

2. A citizen of India who is on deputation to the office/branch/subsidiary/joint venture in India of a foreign company.

### Permitted Remittance

A PNPR may remit his net salary, i.e., salary after:

Taxes (income tax)
Provident Fund contributions
Other statutory deductions

### Significance

This is a carve-out from normal LRS limits – useful for expatriate employees so that they are not restricted to USD 2,50,000 when remitting their legitimate earnings home.

Worked example

### Example 1

Example 1: Mr. John, a US citizen, comes to India on a 2-year assignment with an Indian subsidiary of a US MNC. His net monthly salary is USD 30,000. Can he remit the full amount each month?

Answer: Yes. As his stay is for a specific assignment not exceeding 3 years, he is a PNPR. He may remit the entire net salary (after taxes and statutory deductions) without LRS limits.

### Example 2

Example 2: Mr. Sharma, an Indian citizen, is deputed by his Indian employer (an Indian company) to its branch in India itself for 2 years. Is he a PNPR?

Answer: No. PNPR status for Indian citizens requires deputation to the Indian office of a foreign company. A purely domestic deputation does not qualify.

⚠️ Common exam mistakes

Forgetting the 3-year cap on the employment duration for PNPR status.
Allowing Pakistani citizens this facility – they are specifically excluded.
Permitting remittance of gross salary – only net salary (after tax, PF and other deductions) can be remitted.
Confusing PNPR with NRI/RNOR concepts under the Income-tax Act – PNPR is a FEMA concept tied to employment duration, not residential status under tax law.

Bare-Act text Rule 5 – Item 9 of Schedule III (proviso for PNPR) · FEM (Current Account Transactions) Rules, 2000 · click to expand

A person resident in India but not permanently resident in India and who is a citizen of a foreign state other than Pakistan or a citizen of India who is on deputation to the office or branch or subsidiary or joint venture in India of such foreign company, may make remittance up to his net salary (after deduction of taxes, contribution to provident fund and other deductions).

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Person Resident in India but Not Permanently Resident in India (PNPR)

Worked example

⚠️ Common exam mistakes