TaxTMI 
TaxTMI 
Master Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals (Amended up to January 22, 2015)
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....up to which the Master Circular has been updated is suitably indicated. 4. This Master Circular may be referred to for general guidance. The Authorised Persons and the Authorised Dealer Category - I banks may refer to respective circulars/ notifications for detailed information, if so needed. Yours faithfully (C D Srinivasan) Chief General Manager 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, wheth....
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.... 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 payment of applicable taxes in India, if any. 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 after their employment to enable them to receive their pending bona fide dues, subject to the following conditions: * AD Category-I bank should obtain the full details from the account holder about his legitimate dues expected to be received into his account. * AD Category-I bank has to satis....
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....ft. 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 proceeds of such property outside India except with prior permission of the Reserve Bank. (b) The facility of remittance of sale proceeds of other financial assets is not available to citizens of Pakistan, Bangladesh, Nepal and Bhutan. 6. Remittance of Salary 6.1 A citizen of a foreign State, resident in India, being an employee of a foreign company or a citizen of India, employed by a foreign company outside India and in either case on deputation to the office/ branch/ subsidiary/ joint venture/ group company in India of such foreign company may open, hold an....
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....on 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 1/2000-RB dated 03.05.2000) 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 India, on self declaration, towards maintenance, which could include remittances towards their studies also (ii) up to USD 1 million per financial year, out of sale proceeds of assets / balances in their NRO account maintained with an Authorised Dealer bank in India and (iii) up to limits prescribed under the Liberalized Remittance Scheme. 8.3 All other facilities available to NRIs under FEMA are equally applicable to the students. 8.4 Educational and other loans availed of by them ....