https://www.taxtmi.com/highlights?id=97275 Issue addressed: whether funds held, acquired or invested in foreign currency while being non resident attract statutory protection under FEMA when transferred after becoming resident. The text states that protection under the statutory provision applies only to legitimately sourced and explained foreign funds; unexplained or illegitimate funds fall outside protection. The appellant's uncorroborated explanation as to source and the cash, piecemeal receipt description were held determinative of contravention of the foreign exchange provisions. The author notes appellate discretion to reduce penalty and records a reduction of the monetary penalty as the operative remedial consequence. en-us Sat, 28 Feb 2026 12:39:40 +0530 Sat, 28 Feb 2026 12:39:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=97275 Issue addressed: whether funds held, acquired or invested in foreign currency while being non resident attract statutory protection under FEMA when transferred after becoming resident. The text states that protection under the statutory provision applies only to legitimately sourced and explained foreign funds; unexplained or illegitimate funds fall outside protection. The appellant's uncorroborated explanation as to source and the cash, piecemeal receipt description were held determinative of contravention of the foreign exchange provisions. The author notes appellate discretion to reduce penalty and records a reduction of the monetary penalty as the operative remedial consequence. Highlights FEMA Sat, 28 Feb 2026 12:39:40 +0530 https://www.taxtmi.com/highlights?id=97275