benificiary remitance

[RAMDEO KAKRA]

A RESIDENT INDIAN MADE BY FOREIGN NATIOAL AS BENEFICIARY IN A BANK ACCOUNT AND AFTER HIS DEMISE THE BANKER OF FOREIGN NATIONAL WISHES TO TRANSFER THE FUND, AND COMPLETE HIS LEGAL OBLIGATION. NOW WHATS THE OBLIGATION OF RESIDENT INDIAN AND WHATS THE PROCEDURE TO MAINTAIN THIS REMITANCE IF COME TO RESIDENT FOREIGN CURRENCY DOMESTIC ACCOUNT OF RESIDENT INDIAN. IS THIS CORRECT OR OTHERWISE WHATS PROVISION OF FEMA AND TAXATION ATTRACT AND PROCEDURE TO BE FOLLOWED.

[Surender Gupta]

As per the provisions of FOREIGN EXCHANGE MANAGEMENT (FOREIGN CURRENCY ACCOUNTS BY A PERSON RESIDENT IN INDIA) REGULATIONS, 2000, a person being resident in India can not hold foreign currency account except the situations permitted in these regulations. 

Further, please go to the section 6 of the FEMA, which permits holding of foreign exchange acquired in lieu of inheritance.

[RAMDEO KAKRA]

THANKS MR.GUPTA HOWEVER PL. NOTE THAT A RESIDENT HAVE RIGHT TO OPEN DOMESTIC A/C IN FOREIGN CURRENCY. I RECD.PROFESSIONAL FEE IN US DOLLER AND WITH THAT AMOUNT I OPENED IT  THIS A/C WITH MY HDFC BANK.

AI Summary

Holding foreign exchange by inheritance permitted under FEMA, while resident foreign currency accounts are generally restricted and governed by regulations. A resident Indian named beneficiary cannot generally maintain foreign currency accounts except where expressly permitted; an exception allows holding foreign exchange received by inheritance, which may apply to funds transferred from a foreign national's bank after death. The resident's question about using a domestic foreign-currency account to receive such remittance raises related procedural and taxation considerations.