TaxTMI 
TaxTMI 
Master Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals
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....his circular will stand withdrawn on July 1, 2010 and be replaced by an updated Master Circular on the subject. Yours faithfully, (Salim Gangadharan) Chief General Manager-in-Charge Click here to download Master Circular ============= Document 1 RBI/2009-2010/24 Master Circular No.04/2009-10 July 1, 2009 To, All Authorised Dealer Category - I banks and Authorised banks Madam / Sir, Master Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals Remittance facilities for Non-Residents/Persons of Indian Origin /Foreign Nationals are being governed by sub-section (1) and (2) of section 6 of the Foreign Exchange Management Act, 1999 read with FEMA Notification No.13/2000-RB and FEMA Notification No. 21/2000-RB dated May 3, 2000, as amended from time to time. 2. This Master Circular consolidates the existing instructions on the subject of "Remittance facilities for Non-Resident Indians / Persons of Indian Origin /Foreign Nationals" at one place. The list of underlying circulars/notifications consolidated in this Master Circular is furnished in Appendix. 3. This Master Circular is being issued with ....
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.... current income like rent, dividend, pension, interest, etc. of NRIs who do not maintain an NRO account in India based on an appropriate certification by a Chartered Accountant, certifying that the amount proposed to be remitted is eligible for remittance and that applicable taxes have been paid/provided for. 2 3.2 NRIs/PIO have the option to credit the current income to their Non-Resident (External) Rupee account, provided the Authorized Dealer bank is satisfied that the credit represents current income of the non-resident account holder and income tax thereon has been deducted / provided for. 4. Remittance of assets by a foreign national of non-Indian origin 4.1 A foreign national of non-Indian origin who 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), on production of documentary evidence in support of acquisition / inheritance of assets, an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct T....
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....sets is not available to citizens of Pakistan, Bangladesh, Nepal and Bhutan. 6. Repatriation of sale proceeds of residential property purchased by NRIs / PIO out of foreign exchange 6.1 Repatriation of sale proceeds of residential property purchased by NRI / PIO is permitted to the extent of the amount paid for acquisition of immovable property in foreign exchange received through banking channels. The facility is restricted to not more than two such properties. The balance amount can be credited to the NRO account and can be remitted under USD one million facility. 5 6.2 Authorised Dealer banks may permit repatriation of amounts representing the refund of application / earnest money / purchase consideration made by the house building agencies / seller on account of non-allotment of flat / plot / cancellation of bookings / deals for purchase of residential / commercial property, together with interest, if any (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 th....
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....ce from NRO account. Series) Circular No. 12 dated November 16, 2006 8 Annex-2 Master Circular on Remittance Facilities for Non-Resident Indians/Persons of Indian Origin / Foreign Nationals Operational Instructions for Authorised Dealer Banks 1. General 1.1 Authorised Dealer banks may carefully study the provisions of the Act / Regulations / Notifications issued under the Foreign Exchange Management Act, 1999 (the Act). 1.2 Reserve Bank will not prescribe the documents which should be verified by the Authorised Dealer banks while permitting remittances for various transactions. In this regard Authorised Dealer banks may refer to sub-section (5) of Section 10 of the Act. 1.3 In terms of the provisions contained in sub-section 5 of section 10 of the Act, before undertaking any transaction in foreign exchange on behalf of any person, Authorised Dealer bank is required to obtain a declaration and such other information from the person (applicant) on whose behalf the transaction is being undertaken that will reasonably satisfy him that the transaction is not designed to contravene or evade the provisions of the Act or any of the Rules or Regulations made or....
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....countant 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]. 11 APPENDIX List of notifications / circulars which have been consolidated in this Master Circular - Remittance facilities for Non-Resident Indians/Persons of Indian Origin/Foreign Nationals http://www.rbi.org.in/Scripts/BS_ApCircularsDisplay.aspx http://www.rbi.org.in/Scripts/Bs FemaNotifications.aspx Sl. No. Notification/Circular No. Date 1. Notification No. FEMA 62/2002-RB May 13, 2002 2. Notification No. FEMA 65/2002-RB June 29,2002 3. Notification No. FEMA 93/2003-RB June 9, 2003 4. Notification No. FEMA 97/2003-RB July 8, 2003 5. Notification No. FEMA 119/2004-RB June 29,2004 6. Notification No. FEMA 152/2007-RB May 15, 2007 1. AP (DIR Series) Circular No.45 May 14, 2002 2. AP (DIR Series) Circular No.1 July 2, 2002 3. AP (DIR Series) Circular No.5 July 15, 2002 4. AP (DIR Series) Circular No.19 September 12, 2002 5. AP (DIR Series) Circular No.26 September 28, 2002 6. AP (DIR Series) Circular No.27 Se....