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Exemption from provisions relating to holding /repatriation of Foreign Exchange [ Section 9 ] - FEMA Ready Reckoner - FEMAExtract Exemption from provisions relating to holding /repatriation As per section 9 of FEMA , Section 4 of FEMA prohibits holding of foreign exchange currency by resident in India. Section 8 of FEMA requires that foreign exchange earned is realised and repatriated to India. However, in following cases, The foreign exchange can be held or need not be repatriated to India Possession of foreign currency:- possession of foreign currency or foreign coins by any person up to such limit as the Reserve Bank may specify; Foreign currency account :- foreign currency account held or operated by such person or class of persons and the limit up to which the Reserve Bank may specify; Foreign Exchange acquired or received before July, 1947:- foreign exchange acquired or received before the 8th day of July, 1947 or any income arising or accruing thereon which is held outside India by any person in pursuance of a general or special permission granted by the Reserve Bank; Foreign Exchange abroad:- foreign exchange held by a person resident in India up to such limit as the Reserve Bank may specify, if such foreign exchange was acquired by way of gift or inheritance from a person referred to in clause (c), including any income arising therefrom; Any other receipt specified by RBI:- foreign exchange acquired from employment, business, trade, vocation, services, honorarium, gifts, inheritance or any other legitimate means up to such limit as the Reserve Bank may specify; and RBI to specify by issuing regulations:- such other receipts in foreign exchange as the Reserve Bank may specify. Limits for possession and retention of foreign currency or foreign coins - [ Regulation 3 of the Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2015 ] for the purpose of clause (a) and clause (e) of Section 9 of the FEMA Act :- The Reserve Bank specifies the following limits for possession or retention of foreign currency or foreign coins, namely :- Possession without limit of foreign currency and coins by an authorised person within the scope of his authority ; Possession without limit of foreign coins by any person ; Retention by a person resident in India of foreign currency notes, bank notes and foreign currency travellers' cheques not exceeding US$ 2000 or its equivalent in aggregate , provided that such foreign exchange in the form of currency notes, bank notes and travellers cheques; (a) was acquired by him while on a visit to any place outside India by way of payment for services not arising from any business in or anything done in India; or (b) was acquired by him, from any person not resident in India and who is on a visit to India , as honorarium or gift or for services rendered or in settlement of any lawful obligation; or (c) was acquired by him by way of honorarium or gift while on a visit to any place outside India ; or (d) represents unspent amount of foreign exchange acquired by him from an authorised person for travel abroad . Possession of foreign exchange by a person resident In India but not permanently resident therein - [ Regulation 4 of the Foreign Exchange Management (Possession and Retention of Foreign Currency) Regulations, 2015 ] Without prejudice to clause (iv) of Regulation 3 , a person resident in India but not permanently resident therein may possess without limit foreign currency in the form of currency notes, bank notes and travellers cheques, if such foreign currency was acquired, held or owned by him when he was resident outside India and, has been brought into India in accordance with the regulations made under the Act. Explanation : for the purpose of this clause, 'not permanently resident' means a person resident in India for employment of a specified duration (irrespective of length thereof) or for a specific job or assignment, the duration does not exceed three years .
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