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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 ..... ith an updated Master Circular on the subject. Yours faithfully, (Rudra Narayan Kar) Chief General Manager-in-Charge INDEX 1. Remittance facilities for Non Resident Indians (NRIs) / Persons of Indian Origin (PIO) and Foreign Nationals 2. Definition of NRI/PIO 3. Remittance of current income 4. Remittance of assets by a foreign national of non-Indian origin 5. Remittance of assets by NRI/PIO 6. Remittance of Salary 7. Repatriation of sale proceeds of residential property purchased by NRIs / PIO out of foreign exchange 8. Facilities for students 9. Income-tax clearance 10. International Credit Cards Annex-1 Statement / returns to be submitted to the Reserve Bank APPENDIX List of notifications/circulars which have been consolidated in this Master Circular 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 FEMA Notification No.13/2000-RB dated May 3, 2000, as amended from time to time. Accordingly, remittance of funds from the sale of capital assets in India held by a person, whether residen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l year (April-March), subject to the satisfaction of the Authorised Dealer bank, on production of documentary evidence in support of acquisition/ inheritance of assets and information in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India in their Circular No. 10/ 2002 dated October 9, 2002 [cf. A.P.(DIR Series) Circular No. 56 dated November 26, 2002]. 4.2 These remittance facilities are not available to citizens of Nepal and Bhutan. 4.3 when a person resident in India leaves India for a country (other than Nepal or Bhutan) for employment/business/vocation outside India or with an intention to stay outside India, his/her existing account is re-designated as NRO account. In order to facilitate foreign nationals to collect their pending dues in India, AD Category-I banks may permit such foreign nationals to re-designate their resident account maintained in India as NRO account on leaving the country after their employment to enable them to receive their pending bonafide dues, subject to the following conditions: * AD Category-I bank should obtain the full details from the account holder about his legitimate dues expected to be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 proceeds of such property would be guided by the extant instructions on remittance of balance in the NRO account. 5.4 (a) The remittance facility in respect of sale proceeds of immovable property is not available to citizens of Pakistan, Bangladesh, Sri Lanka, China, Afghanistan, Iran, Nepal and Bhutan. A person or his successor who has acquired immovable property in accordance with Section 6(5) of FEMA, 1999 cannot repatriate sale proceeds of such property outside India except with prior permission of the Reserve Bank. (b) The facility of remittance of sale proceeds of other financial assets is not available to citizens of Pakistan, Bangladesh, Nepal and Bhutan. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transaction. Such funds may also be credited to the NRE / FCNR (B) account of the NRI / PIO, if they so desire. 7.3 Authorised Dealer banks may allow repatriation of sale proceeds of residential accommodation purchased by NRIs/ PIO out of funds raised by them by way of loans from the authorized dealer banks / housing finance institutions to the extent of such loan/s repaid by them out of foreign inward remittances received through normal banking channel or by debit to their NRE / FCNR(B) accounts. *Definition of PIO for this purpose will be as stated in Notification No. FEMA 21/RB-2000 dated May 3, 2000. 8. Facilities for students 8.1 Students going abroad for studies are treated as Non- Resident Indians (NRIs) and are eligible for all the facilities available to NRIs under FEMA. 8.2 As non-residents, they will be eligible to receive remittances from India (i) up to USD 100,000 from close relatives in India, on self declaration, towards maintenance, which 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) up ..... X X X X Extracts X X X X X X X X Extracts X X X X
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