Regulation 4 - Permission for remittance of assets in certain cases - Foreign Exchange Management (Remittance of Assets) Regulations, 2000

4. Permission for remittance of assets in certain cases :- 1 (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. (2) A citizen of foreign state, not being a citizen of Nepal or Bhutan or a person of Indian origin (PIO), who - (i) has retired from an employment in India, or (ii) has inherited the assets from a person referred to in sub-section (5) of section 6 of the Act; or (iii) is a widow resident outside India and has inherited assets of her deceased husband who was an Indian citizen resident in India, 13 [may remit an amount, not exceeding US$ 1, 000, 000 (US Dollar One Million Only) per financial year subject to payment of applicable taxes in India, if any, on production of] 3 (a) documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter 14 [***] 15 [(b) ***] Provided that for the purpose of arriving at annual ceiling of remittance under the sub-regulation (2), the funds representing sale proceeds of shares and immovable property owned or held by the citizen of foreign state on repatriation basis in accordance with the Foreign Exchange Management (Acquisition and transfer of immovable property in India) Regulations, 2000 and Foreign Exchange Management (Transfer of Indian security by a person resident outside India) Regulations, 2000 made under the Act, shall not be included. Provided further 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) had come to India for studies/training and has completed his studies/training, may remit the balance available in his account, provided such balance represents funds derived out of remittances received from abroad through normal banking channels or rupee proceeds of foreign exchange brought by such person and sold to an authorised dealer or out of stipend/scholarship received from the Government or any Organisation in India. 4 (3) A Non-Resident Indian (NRI)/Person of Indian Origin (PIO) may remit an amount, not exceeding US $ 1,000,000 (US Dollar One million only) per 8 financial year 16 [subject to payment of applicable taxes in India, if any,], (i) out of the balances held in NRO accounts/sale proceeds of assets/the assets in India acquired by him by way of inheritance/legacy on production of: documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter, 17 [***] 18 [***] (ii) Under a deed of settlement made by either of his parents or a close relative (as defined in Section 6 of the Companies Act, 1956) and the settlement taking effect on the death of the settler, on production of : the original deed of settlement; 19 [***] 20 [***] 11 Omitted Provided 12 ( *** ) that where the remittance under Clause (i) and (ii) is made in more than one instalment, the remittance of all instalments shall be made through the same Authorised Dealer. 5 (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 be and also allow remittance out of the assets of Indian companies under liquidation under the provisions of the Companies Act, 1956 , subject to the following conditions : (i) Authorised Dealer shall ensure that the remittance is in compliance with the order issued by a court in India/ order issued by the official liquidator or the liquidator in the case of voluntary winding up ; and (ii) no remittance shall be allowed unless the applicant submits : 21 [***] (b) Auditor's certificate confirming that all liabilities in India have been either fully paid or adequately provided for. (c) Auditor's certificate to the effect that the winding up is in accordance with the provisions of the Companies Act, 1956. In case of winding up otherwise than by a court, an auditor's certificate to the effect that there is no legal proceedings pending in any court in India against the applicant or the company under liquidation and there is no legal impediment in permitting the remittance. 22 [(iii) payment of applicable taxes in India, if any.] *************************** Note : 1. Has been substituted vide Notification No. 062/2002 dated 13/5/2002 , before it was read as, (1) A person specified in sub-regulation (2) may make remittance of assets through an authorised dealer, to the extent specified in that sub-regulation. 2. For the words 'US$ 1,00,000 (US Dollar One lakh only)' has been substituted with the words and figures, 'US$ 1,000,000 (US Dollar One million only)', vide Notification No. 097/2003 dated 8/7/2003 , Earlier for the words ₹ 20 lakhs , the words US$ 1,00,000 (US Dollar one lakh only) have been substituted vide notification no. 62/2002 dated 13/5/2002 3. Has been substituted vide Notification No. Supra, before it was read as, documentary evidence in support of acquisition of assets by the remitter; and . 4. Has been substituted vide Notification No. 119/2004 dated 29/6/2004 , before it was read as, A Non-resident Indian (NRI)/Person of Indian Origin (PIO), may remit an amount, not exceeding US$ 1,000,000 (US Dollar One million only) per calendar year, out of the balances held in NRO accounts/sale proceeds of assets/the assets in India acquired by him by way of inheritance/legacy, on production of the documents detailed in sub-regulation (2)(a) and (b); Provided that in respect of remittance of sale proceeds of immovable property, the property/sale proceeds were held/retained as deposits cumulatively for a minimum period of 10 years; Provided further that where the remittance is made in more than one instalment, the remittance of all instalments shall be made through the same authorised dealer. Vide Notification No. 97/2003 dated 8/7/2003 , before it was read as, An authorised dealer in India may, without approval from Reserve Bank, effect remittance of assets made by a person eligible under sub-regulation (2) . Originally sub-regulation (3) was inserted by notification no. 62/2002 dated 13/5/2002 read as: (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 installment, the remittance of all installments shall be made through the same authorised dealer. 5. Has been substituted vide Notification No. G.S.R. 90(E) dated 18/9/2007 before it was read as , 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. Earlier it was substituted by notification no. 62/2002 dated 13/5/2002 6. For the word 'calendar', the word 'financial' has been substituted vide Notification No. 152/2007 dated 15/5/2007 7. Has been substituted vide Notification No. Supra , before it was read as, a Tax clearance/no objection certificate from the Income-Tax authority for the remittance 8. For the word 'calendar', the word 'financial' has been substituted vide Notification No. Supra 9. Has been substituted vide Notification No. Supra , before it was read as, a tax clearance/no objection certificate from the Income Tax Authority for the remittance 10. Has been substituted vide Notification No. Supra , before it was read as, a tax clearance/No objection certificate from the Income-Tax Authority for the remittance; 11. Proviso has been Omitted vide Notification No. Supra , before it was read as, Provided that in respect of remittance of sale proceeds of immovable property (acquired other than by way of inheritance/legacy/settlement),the property/sale proceeds were held/retained as eligible investments cumulatively for a minimum period of 10 years; 12. The word 'further' has been omitted vide Notification No. Supra 13. Substituted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 , before it was read as, may remit an amount, not exceeding 2 US$ 1,000,000 (US Dollar One million only) per 6 financial year on production of, 14. Deleted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 , before it was read as, and 15. Deleted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 , before it was read as, 7 (b) an undertaking by the remitter and certificate from a Chartered Accountant in the format prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India in their Circular No. 10/2002 dated October 9, 2002. 16. Inserted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 17. Deleted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 , before it was read as, and 18. Deleted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 , before it was read as, 9 (b) an undertaking by the remitter and certificate from a Chartered Accountant in the format prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India in their Circular No. 10/2002 dated October 9, 2002. 19. Deleted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 , before it was read as, and 20. Deleted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 , before it was read as, 10 (b) an undertaking by the remitter and certificate from a Chartered Accountant in the format prescribed by the Central Board of Direct Taxes, Ministry of Finance, Government of India in their Circular No. 10/2002 dated October 9, 2002. 21. Deleted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014 , before it was read as, No objection or Tax clearance certificate from Income Tax authority for the remittance. 22. Inserted vide NOTIFICATION NO. 324/2014-RB Dated 31st October, 2014