Credits to Non-Resident External Rupee (NRE) Accounts
AP (DIR Series) (2002-2003) Circular No. 5, dated 15-7-2002
Attention
of authorised dealers is invited to paragraph No. 3 of Schedule 1 to Reserve
Bank Notification No. FEMA 5/2000-RB, dated May 3, 2000 regarding permitted
credits to NRE Rupee Accounts and A.P. (DIR Series) Circular No. 45, dated May
14, 2002 permitting them to allow repatriation of current income like rent,
dividend, pension, interest, etc. of NRIs who do not maintain an NRO account in
India based on an appropriate certification by a Chartered Accountant,
certifying that the amount proposed to be remitted is eligible for remittance
and that applicable taxes have been paid/provided for.
2. It is
clarified that authorised dealers may credit the current income like rent,
dividend, pension, interest, etc. of NRIs to their Non-Resident (External)
Rupee Accounts provided they are satisfied that the credit represents current
income of the non-resident account holder and income-tax thereon has been
deducted/paid/provided for, as the case may be.
3. Authorised
Dealers may bring the contents of this circular to the notice of their
constituents concerned.
4. The
directions contained in this circular have been issued under section 10(4) and
section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).