| Date: |
30-09-2015
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| Notification No: |
RBI/2015-16/195 A.P. (DIR Series) Circular No.18
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2015-16/195 |
| Subject: |
Regularisation of assets held abroad by a person resident in India under Foreign Exchange Management Act, 1999
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RBI/2015-16/195
A.P. (DIR Series) Circular No.18
September 30, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Regularisation of assets held abroad by a person resident in India under Foreign
Exchange Management Act, 1999
The Government of India has enacted The Black Money (Undisclosed Foreign Income
and Assets) and Imposition of Tax Act, 2015 (Black Money Act) on May 26, 2015 to
address the issue of undisclosed assets held abroad. It provides for separate
taxation of income and assets acquired abroad from income not disclosed but
chargeable to tax in India.
- To effectively deal with assets held abroad by persons resident in
India in violation of the Foreign Exchange Management Act, 1999 (FEMA) for
which declarations have been made and taxes and penalties have been paid
under the provisions of the Black Money Act, Reserve Bank has issued the
Foreign Exchange Management (Regularization of assets held abroad by a
person resident in India) Regulations, 2015 notified though
Notification No.
FEMA 348/2015-RB dated September 25, 2015 vide G.S.R. No. 738 (E) dated
September 25, 2015.
- Accordingly, it is clarified that:
a) No proceedings shall lie under the Foreign Exchange Management Act, 1999
(FEMA) against the declarant with respect to an asset held abroad for which
taxes and penalties under the provisions of Black Money Act have been paid.
b) No permission under FEMA will be required to dispose of the asset so
declared and bring back the proceeds to India through banking channels
within 180 days from the date of declaration.
c) In case the declarant wishes to hold the asset so declared, she/ he may
apply to the Reserve Bank of India within 180 days from the date of
declaration if such permission is necessary as on date of application. Such
applications will be dealt by the Reserve Bank of India as per extant
regulations. In case such permission is not granted, the asset will have to
be disposed of within 180 days from the date of receipt of the communication
from the Reserve Bank conveying refusal of permission or within such
extended period as may be permitted by the Reserve Bank and proceeds brought
back to India immediately through the banking channel.
- AD Category – I banks may bring the contents of this circular to the
notice of their constituents and customers concerned.
- The directions contained in this circular have been issued under sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999)
and are without prejudice to permissions / approvals, if any, required under
any other law.
Yours faithfully,
(B P Kanungo)
Principal Chief General Manager
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