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FOREIGN EXCHANGE MANAGEMENT (REMITTANCE OF ASSETS) REGULATIONS, 2000
Notification
No. 13 dated 3rd May 2000
GSR
396 (E) dated 3.5.2000: In exercise of the powers conferred by
section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the
Reserve Bank makes the following regulations in respect of remittance outside
India by a person whether resident in India or not, of assets in India, namely:
(i)
These Regulations may be called the Foreign exchange Management
(Remittance of Assets) Regulations, 2000
(ii)
They shall come into force on 1st day of June, 2000.
In
these Regulations, unless the context requires otherwise, -
(i)
�Act � mean the Foreign Exchange Management Act, 1999 (42 of 1999);
(ii)
�authorised dealer � means a person authorised as an authorised
dealer under sub-section (1) of section 10 of the Act;
(iii)
�Person of India Origin (PIO)�
mean a citizen of any country other than Bangladesh or Pakistan, if
(a) he
at any time held Indian passport; or
(b)
he or either of his parents or any of his grand-parents was a citizen of
India by virtue of the Constitution of India or the Citizenship Act,1955 (57 of
1955); or
(c)
the person is a spouse of an Indian citizen or a person referred to in
sub-clause (a) or (b).
(iv)
�Remittance of Assets� mean remittance outside India of funds
representing a deposit with a bank or a firm or a company, provident fund
balance or superannuation benefits, amount of claim or maturity proceeds of
Insurance policy, sale proceeds of shares, securities, immovable property or any
other asset held in India in accordance with the provisions of the Act or rules
or regulations made thereunder;
(v)
the words and expressions used but not defined in these Regulations shall
have the same meaning respectively assigned to them in the Act.
Save
as otherwise provided in the Act or rules or regulations made or issued
thereunder, no person whether resident in India or not, shall make remittance of
any asset held in India by him or by any other person:
Provided
that the Reserve Bank may, for sufficient reasons, permit any person to make
remittance of any asset held in India by him or by any other person.
(1)
A person specified in sub-regulation (2) may make remittance of asset
through an authorised dealer, to the extent specified in that sub-regulation.
(2)
A citizen of foreign state, not being a citizen of Nepal or Bhutan or a
person in Indian origin (PIO), who-
(i)
has retired from an employment in India; or
(ii)
has inherited the assets from a person referred to in sub-section (5) of
section 6 of the Act ; or
(iii)
is a widow resident outside India and has inherited asset of her deceased
husband who was an Indian citizen resident in India, may remit an amount, not
exceeding Rs. 20 lakhs per calendar year, on production of:
(a) documentary
evidence in support of acquisition of assets by the remitter; and
(b) a
Tax clearance /no objection certificate from the Income-tax authority for the
remittance:
Provided
that for the purpose of arriving at annual ceiling of remittance under the
sub-regulation (2), the funds representing sale proceeds of shares and immovable
property owned or held by the citizen of foreign state on repatriation basis in
accordance with the Foreign Exchange Management (Acquisition and Transfer of
Immovable Property in India) Regulations, 2000 and Foreign Exchange Management
(Transfer of Indian Security by a person resident outside India) Regulations,
2000 made under the Act shall not be included:
Provided
further that where the remittance is made in more than one instalment, the
remittance of all instalments shall be made through the same authorised dealer.
(iv)
had come to India for studies/training and has completed his
studies/training, may remit the balance available in his account, provided such
balance represents funds derived out of remittances
received from abroad through normal banking channels or rupee proceeds of
foreign exchange brought by such person and sold to an authorised dealer or out
of stipend/scholarship received from the government or any organisation in
India.
(3)
An authorised dealer in India may, without approval from Reserve Bank,
effect remittance of assets made by a person eligible under sub-regulation (2).
An
entity in India may remit the amount being its contribution towards the
provident fund / superannuation /pension fund in respect of the expatriate staff
in its employment who are resident in India but not permanently resident
therein.
Explanation:
For the purpose of this Regulation,
(a) �Expatriate staff� means a person
whose provident/ superannuation/ pension fund is maintained outside India by
his principal employer outside India;
(b)
�Not permanently resident� means a person resident in India for
employment of a specified duration (irrespective of length thereof) or for a
specific job or assignment, the duration of which does not exceed three years.
6.
Reserve Bank�s prior permission in certain cases:
(1)
A person who desired to make a remittance of assets in the following
cases may to apply to the Reserve Bank, namely:
(i)
in Form LEG annexed to this regulation for remittance on account of
legacy, bequest or inheritance to a citizen of foreign state permanently
resident outside India;
(ii)
remittance to a person resident outside India on the ground that hardship
will be caused to such a person if remittance from India is not made;
(iii)
remittance of winding up proceeds of a branch/office in India of a person
resident outside India:
Provided that the application is
supported by the following documents, namely:
(A) Copy of the Reserve Bank�s
permission for establishing the branch/ office in India;
(B) Auditor�s certificate, -
(i)
indicating the manner in which remittable amount has been arrived and
supported by a statement of assets and liabilities of the applicant, and
indicating the manner of disposal of assets;
(ii) confirming
that all liabilities in India including arrears of gratuity and other benefits
to employees etc. of the branch /office have been either fully met or adequately
provided for;
(iii)
confirming that no income accruing from sources outside India (including
proceeds of exports) has remained un-repatriated to India
;
(C) No-objection or Tax clearance
certificate from Income-Tax authority for the remittance; and
(D) Confirmation from the applicant
that no legal proceedings in any Court in India is pending and there is no legal
impediment to the remittance.
(2)
On consideration of the application made under sub-regulation (1), the
Reserve Bank may permit the remittance, subject to such terms and conditions as
it deem necessary.
LEG
[See Regulation 6]
Application
for remittance of legacies, bequests or inheritances to beneficiaries resident
outside India
Instructions
1.
The application should be completed and submitted through an authorised dealer
through whom the remittance is sought to be made to the office of Reserve Bank
under whose jurisdiction the applicant resides.
Documentation
2.
Certified copy of the probate together with a copy of the Will annexed thereto,
or letters of administration or succession certificate, as the case may be, in
respect of the Indian assets of the deceased person.
3.
Tax Clearance/ No Objection Certificate from the Income-tax authorities to show
that no liabilities are outstanding in respect of the estate of the deceased
person on account of Income-tax, Wealth tax, Capital Gains tax, etc.
4.
A statement of Indian assets of the deceased person, indicating the form in
which they are held. The number and date of Reserve Bank�s approval for
holding or acquiring shares of Indian companies and immovable property should be
indicated, wherever, applicable.
5.
A certificate from a Chartered Accountant showing how the remittable amount has
been arrived at and that all liabilities of the estate in India have been met or
adequately provided for.
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1.
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Particulars
of the deceased person:
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1.
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(i)
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Name
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(i)
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(ii)
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Nationality
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(ii)
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(iii)
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Country
of permanent residence at the time of death
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(iii)
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(iv)
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Date
and place of demise
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(iv)
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(v)
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Whether
the deceased was residing in India at any time during his life time; if
so, state period
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(v)
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2.
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Particulars
of the beneficiary /ies:
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2.
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(i)
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Name/s
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(i)
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(ii)
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Nationality/
ies
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(ii)
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(iii)
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Country/ies
of permanent residence
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(iii)
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3.
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Whether
the deceased person had made any investment in India, if so details as
under:
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3.
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(i)
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Investments
made on non �repatriation basis
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(i)
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(ii)
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Investments
made with repatriation benefits
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(ii)
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4.
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Amount
of remittance applied for
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4.
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I/
we hereby declare that the particulars given above and the documents submitted
herewith are true and correct to the best of my/ our knowledge and belief. I/ we
also declare that I/ we have not made any application to any other office of the
Reserve Bank of India for the same purpose.
Place:
___________________
Date:
___________________
Signature/s
of Applicant _______________________
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