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Remittance of Assets in India Acquired by way of Inheritance/ Legacy/
Foreign Nationals
A.P.
(DIR Series) Circular No. 19 dated 12th September 2002
Attention
of authorised dealers is invited to Regulation 4 of Reserve Bank Notification
No. FEMA.13/ 2000-RB dated May 3, 2000 in terms of which, authorised dealers
have been permitted to allow remittance upto Rs.20 lakhs per calendar year, out
of the assets in India to foreign nationals, including retired employees or
non-resident widows of Indian citizens. Reserve Bank has issued Notification No.
FEMA 62/ RB-2002 dated May 13, 2002 (copy enclosed) amending the above
Notification to enhance the existing limit of Rs. 20 lakhs to USD 100,000 per
calendar year and also extend the facility of remittance to Non-Resident Indians
and Persons of Indian Origin (NRIs/ PIOs) not exceeding
USD 100,000, per calendar year, out of the assets in India acquired by
way of inheritance/ legacy.
2.
Accordingly, it will be in order for authorised dealers to allow
remittance of an amount not exceeding USD 100,000 (US Dollars one lakh only),
per calendar year, out of the assets in India, by a citizen of foreign state,
not being a citizen of Nepal and Bhutan or a person of Indian Origin (PIO) on
production of the following: -
(i)
documentary evidence in support of acquisition of assets by the remitter,
and
(ii)
a tax clearance/ No Objection Certificate from the Income-Tax authority
for the remittance.
3.
It will be also in order for the authorised dealers to allow remittances
by a Non Resident Indian and Person of Indian Origin an amount not exceeding USD
100,000 (US Dollar one lakh only) per calendar year, out of the assets in India
acquired by way of inheritance/ legacy, on production of the following:
(i) documentary evidence to
establish that the assets have been acquired by inheritance/ legacy; and
(ii)
a tax-clearance/ No Objection Certificate from the Income-Tax authority
for the remittance.
4.
In case, the remittance is to be made in more than one installment, the
remittance of all installments should be remitted through the same authorised
dealer.
5.
Authorised Dealers may bring the contents of this circular to the notice
of their constituents concerned.
6.
The directions contained in the circular have been issued under Section
10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of
1999).
[A.P. (DIR Series) Circular No.19 dated September 12, 2002]
Notification
No. FEMA. 62 dated 13th May 2002
Foreign
Exchange Management (Remittance of Assets) (Amendment) Regulations, 2002
In
exercise of the powers conferred by Section 47 of the Foreign Exchange
Management Act, 1999 (42 of 1999) and in partial modification of its
Notification No. FEMA.13/ 2000-RB dated May 3, 2000 the Reserve Bank of India
makes the following amendments in the Foreign Exchange Management (Remittance of
Assets) Regulations, 2000, namely:
1.
Short title and commencement
(i) These Regulations may be called the
"Foreign Exchange Management (Remittance of Assets) (Amendment)
Regulations, 2002".
(ii) They shall come into force from the date of
their publication in the Official Gazette of Government of India.
2.
Amendment of the Regulations
In
the Foreign Exchange Management (Remittance of Assets) Regulations, 2000,
(a)
In Regulation 2,
(i)
after clause (ii), the following clause shall be inserted, namely: -
"(iii)
'Non-Resident Indian (NRI)' means a person resident outside India who is
a citizen of India."
(ii)
The existing clauses (iii), (iv) and (v) shall be renumbered as (iv), (v)
and (vi) respectively.
(b)
In Regulation 4,
(i)
for
sub-regulation (1), the following sub-regulation shall be substituted, namely: -
"(1)
A person specified in sub-regulation (2) and (3) may make remittance of
assets through an authorised dealer, to the extent specified in those
sub-regulations."
(ii)
In sub-regulation (2), the words, "Rs.20 lakhs per calendar
year" shall be substituted with the words, "US $ 1,00,000 (US Dollar
One lakh only) per calendar year"
(iii)
after sub-regulation (2), the following sub-regulation shall be inserted,
namely: -
"(3)
A Non-resident Indian (NRI)/Person of Indian Origin (PIO), may remit an
amount, not exceeding US$ 1,00,000 (US Dollar One lakh only) per calendar year,
out of the assets in India acquired by him by way of inheritance/legacy on
production of,
(a)
documentary evidence in support of the inheritance/legacy, and
(b)
a Tax clearance/no objection certificate from the Income-Tax authority for the
remittance."
Provided
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)
for sub-regulation (3), the following sub-regulation shall be
substituted, namely: -
"(4)
An Authorised dealer in India may, without approval from Reserve bank,
effect remittance of assets made by a person eligible under sub-regulation (2)
or sub-regulation (3) as the case may."
(c)
In Regulation 6, the sub-regulation (1)(i) shall be substituted by: -
"(i)
Remittance exceeding US$ 1,00,000 (US Dollar One lakh only) per
calendar year on account of legacy, bequest or inheritance to a citizen of
foreign state permanently resident outside India."
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