TMI BlogMaster Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign NationalsX X X X Extracts X X X X X X X X Extracts X X X X ..... n the subject of "Remittance facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals"at one place. The list of underlying circulars/notifications consolidated in this Master Circular is furnished in Appendix. 3. This Master Circular is being issued with a sunset clause of one year. This circular will stand withdrawn on July 1, 2011 and be replaced with an updated Master Circular on the subject. 1. Remittance facilities for Non Resident Indians (NRIs) / Persons of Indian Origin (PIO) and Foreign Nationals The Regulations for transfer of assets outside India by a person, whether resident in India or not, are given in the Notification Nos. FEMA 13/2000-RB and FEMA 21/2000- RB dated May 3, 2000 and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxes have been paid/provided for. 3.2 NRIs/PIO have the option to credit the current income to their Non-Resident (External) Rupee account, provided the Authorized Dealer bank is satisfied that the credit represents current income of the non-resident account holder and income tax thereon has been deducted / provided for. 4. Remittance of assets by a foreign national of non-Indian origin 4.1 A foreign national of non-Indian origin who has retired from an employment in India or who has inherited assets from a person resident in India or who is a widow of an Indian citizen who was resident in India, may remit an amount not exceeding USD one million, per financial year (April-March), subject to the satisfaction of the Authorised Dea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remitter and certificate by a Chartered Accountant in the prescribed formats. Settlement is also a mode of inheritance from the parent, the only difference being that the property under the settlement passes to the beneficiary on the death of the owner/parent without any legal procedures/hassles and helps in avoiding delay and inconvenience in applying for probate, etc. In case settlement is done without retaining any life interest in the property i.e. during the lifetime of the owner/parent, it would be tantamount to regular transfer by way of gift. Therefore, if the property is received by NRI/PIO by way of settlement without the settler retaining life interest, it may be reckoned as transfer by way of gift and the remittance of sale proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able under the Income Tax Act, 1961 is paid on the entire salary as accrued in India. [The above provisions on remittance of Salary should be read with Schedule III (7) of FEMA (Current Account Transactions) Rules, 2000 ] 7. Repatriation of sale proceeds of residential property purchased by NRIs / PIO out of foreign exchange 7.1 Repatriation of sale proceeds of residential property purchased by NRI / PIO is permitted to the extent of the amount paid for acquisition of immovable property in foreign exchange received through banking channels. The facility is restricted to not more than two such properties. The balance amount can be credited to the NRO account and can be remitted under USD one million facility as mentioned in parag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h could include remittances towards their studies also (ii) up to USD 1 million per financial year, out of sale proceeds of assets / balances in their NRO account maintained with an Authorised Dealer bank in India and (iii) upto USD 200,000 per financial year under the Liberalized Remittance Scheme. 8.3 All other facilities available to NRIs under FEMA are equally applicable to the students. 8.4 Educational and other loans availed of by them as residents in India will continue to be available as per FEMA regulations. 9. Income-tax clearance The remittances will be allowed to be made by the Authorized Dealer banks on production of an undertaking by the remitter and a certificate from a Chartered Accountant in the formats prescr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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