| Date: |
20-11-2014
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| Notification No: |
RBI/2014-15/307 A.P. (DIR Series) Circular No. 38
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/307 |
| Subject: |
Acquisition/Transfer of Immovable property – Payment of taxes
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RBI/2014-15/307
A.P. (DIR Series) Circular No. 38
November 20, 2014
To
All Category – I Authorised Dealer Banks
Madam/ Sir,
Acquisition/Transfer of Immovable property – Payment of taxes
Attention of Authorised Dealers in Foreign Exchange is invited to Foreign
Exchange Management (Acquisition and Transfer of immovable property in India)
Regulations, 2000 notified vide
Notification No. FEMA 21 /2000-RB dated 3rd May
2000 as amended from time to time.
- It has been observed that doubts persist in the members of public
regarding requirement of payment of taxes while undertaking property
transactions under these regulations.
- In this connection, it is clarified that transactions involving acquisition
of immovable property under these regulations shall be subject to the applicable
tax laws in India.
- Reserve Bank has since amended the Principal Regulations through the Foreign
Exchange Management (Acquisition and Transfer of immovable property in India)
(Amendment) Regulations, 2014 notified vide
Notification No. FEMA.321/2014-RB
dated September 26, 2014 c.f. G.S.R. No.733(E) dated October 17, 2014.
- Authorised Dealers may bring the content of this circular to the notice of
their constituents concerned.
- The directions contained in this circular have been issued under Section
10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999)
and are without prejudice to permissions/approvals, if any, required under any
other law.
Yours faithfully
(C D Srinivasan)
Chief General Manager
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