TaxTMI 
TaxTMI 
Master Circular on Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals
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.... updated is suitably indicated. 4. This Master Circular may be referred to for general guidance. The Authorised Dealer Category - I banks and Authorized banks may refer to respective circulars / notifications for detailed information, if so needed. Yours faithfully, (A K Pandey) 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, whether resident in India or not, are given in the Not....
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....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, 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 satisfy itself as regards the credit of amounts which have to be bona fide dues of the account holder when she / he was a resident in India. * The funds credited to the NRO account should be repatriated abroad immedi....
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....on 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 and maintain a foreign currency account with a bank outside India and receive the whole salary payable to him for the services rendered to the office/ branch/ subsidiary/ joint venture/ group company in India of such foreign company, by credit to such account, provided that income tax chargeable under the Income-tax Act,1961 is paid on the entire salary as accrued in India. 6.2 A citizen of a foreign state resident in India being in employment with a company incorporated in India may open, hold and maintain a foreign currency account with a bank outside India and remit the whole s....
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....ance Scheme which would include remittances from close relatives in India towards maintenance and remittances towards their studies. However, for the purpose of studies, the limits would be as demanded by the university abroad; and (ii) 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. 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 as residents in India will continue to be available as per FEMA regulations. 9. Income-tax clearance The remittances will be allowed to be made by the Authorized Dealer banks on production of an undertaking by the remitter in the formats prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India from time to time. Reserve Bank of India will not issue any instructions under FEMA, 1999 clarifying tax issues. It shall be mandatory on the part of Authorised Dealers to comply with the requirement of tax laws, as applicable. 10. International Credit Cards Authorised Dealer banks have been permitted to issue International Credit Ca....