REMITTANCE OF ASSETS BY NON – RESIDENT:
In recent times, there has been considerable increase in remittances from India by Non resident. We discuss what all can be remitted and the FEMA/ RBI guidelines. A Non – Resident may remit sale proceeds of immovable properties, shares, securities, PF balance or superannuation benefits, maturity proceeds of insurance policy or any other asset held in India in accordance with the provisions of Foreign Exchange Management Act, 1999 or rules and regulations made thereunder.
Remittance of assets outside India could be done by a:
- Foreigner
- Resident
- Non – Resident Indian/ PIO
The sale proceeds of all the assets shall first be transferred to the NRO account.
The remittance of sale proceeds of immovable properties which has been purchased out of foreign exchange/ rupee funds is permitted to the extent of amount paid on acquisition (and is restricted to not more than two such residential properties). The balance amount can be credited to NRO account and can be remitted under USD 1 million facility.
For more detailed information on repatriation of sale proceeds of immovable property, please visit our post http://klaggarwal.com/others/repatriation-of-sale-proceeds-of-immovable-property/
USD 1 MILLION FACILITY TO NON – RESIDENT:
A Non – Resident Indian/ or a PIO may remit an amount of USD 1 million per financial year out of the balance lying in his NRO account. This remittance shall be done after the Authorised Dealer (AD) has been satisfied regarding the legality of the money being transferred and the tax payment status. However, this remittance facility is not available to the citizens of Pakistan, Bhutan, Nepal and Bangladesh.
Prior permission of RBI is required for remitting an amount exceeding USD 1 million per financial year.
This remittance facility is restricted to the citizens of Srilanka, China, Afganistan and Bhutan. The citizens of above countries cannot repatriate sale proceeds of immovable property.
REMITTANCE OF CURRENT INCOME:
The current income like rent, interest, pension, dividend may be credited directly to the NRE account of the PIO/NRI, if AD is satisfied that applicable taxes have been paid/provided for.
Students going abroad are treated as NRI’s and are eligible for all the facilities that a NR enjoy.
- they can receive USD 100000 from close relatives towards maintenance (this includes fees for education).
- upto USD 1 million per financial year out of sale proceeds of assets/immovable property (as being discussed in above paragraphs).
- any other facility that a NR enjoy.
REMITTANCE OF ASSTES BY A FOREIGN NATIONAL OF NON INDIAN ORIGIN (AND FOREIGN COMPANIES):
The people who fit in above mentioned category are:>
- foreigner who has been in employment in India for many years.
- foreigner widow of an Indian Citizen.
- foreigner who has inherited assets from a resident.
The USD 1 million facility apply.
An Indian resident employed by a foreign company wherein the Indian resident is working in the Indian branch/ joint venture/ rep office of the foreign company is allowed to open, hold & maintain a foreign currency account.
However, the income tax payable on such salary should be paid as per provisions of Income Tax Act, 1961. Similarly, a foreigner who is resident in India and is employed in an Indian Company may transfer his Indian Salary to a foreign currency account provided the relevant Indian Income Tax has been paid/ provided for.
If a foreign national leaves India after being in employment here, his Indian bank account may be designated as NRO account.