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 on July 1, 2014 and be replaced with 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng by the 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (net of income tax payable thereon), provided the original payment was made out of NRE/ FCNR (B) account of the account holder, or remittance from outside India through normal banking channels and the Authorized Dealer bank is satisfied about the genuineness of the 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 Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. A.P. (DIR Series) Circular No.45 May 14, 2002 2. A.P. (DIR Series) Circular No.1 July 2, 2002 3. A.P. (DIR Series) Circular No.5 July 15, 2002 4. A.P. (DIR Series) Circular No.19 September 12, 2002 5. A.P. (DIR Series) Circular No.26 September 28, 2002 6. A.P. (DIR Series) Circular No.27 September 28, 2002 7. A.P. (DIR Series) Circular No.35 November 01, 2002 8. A.P.(DIR Series) Circular No.40 November 5, 2002 9. A.P. (DIR Series) Circular No.46 November 12, 2002 10. A.P. (DIR Series) Circular No.56 November 26, 2002 11. A.P. (DIR Series) Circular No.59 December 9, 2002 12. A.P. (DIR Series) Circular No.67 January 13, 2003 13. A.P. (DIR Series) Circular No.101 May 5, 2003 14. A.P. (DIR Series) Circular No.104 May 31, 2003 15. A.P. (DIR Series) Circular No.43 December 8, 2003 16. A.P. (DIR Series) Circular No.45 December 8, 2003 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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