Remittance of assets in India acquired by way of inheritance/legacy/Foreign Nationals
AP (DIR Series) (2002-2003) Circular No.19, dated 12-9-2002
Remittance of assets in India acquired by way of inheritance/legacy/Foreign Nationals
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 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 instalment, the remittance of all
instalments 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).