Thursday, January 09, 2014

Provisions under section 6 (4) of Foreign Exchange Management Act, 1999

1.   Provisions under section 6 (4) of Foreign Exchange Management Act, 1999 – Clarifications
According to Section 6 (4) of FEMA, 1999 a person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India
Through Circular RBI/2013-14/440 dtd 09-01-2014, RBI clarifies that the following transactions are also covers under Section (4) of FEMA
a.   Foreign currency accounts opened and maintained by such a person when he was resident outside India
b.   Income earned through employment or business outside India while such person was resident outside India
c.   Income earned from investments made while such person was resident outside India of from gift
d.   Income earned by inheritance received while such a person was resident outside India

e.   A person resident in India may freely utilise all their eligible assets abroad as well as income on such assets or sale proceeds thereof received after their return to India. See the details here

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