9911796707
TMI BlogRemittances in Foreign Exchange (Immunities) Scheme, 1991 and Indian Development Bonds Scheme, 1991, framed under the Remittances of Foreign Exchange and Investment in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991--RegardingX X X X Extracts X X X X X X X X Extracts X X X X ..... ow of foreign exchange. For this purpose, the Remittances of Foreign Exchange and Investment in Foreign Exchange Bonds (Immunities and Exemptions) Bill, 1991, was introduced in Parliament during the just concluded Budget session. The Bill, as passed by both Houses of Parliament, received the assent of the President on 18th September, 1991, and has since been enacted as Act No.41 of 1991. The two schemes, viz., the Remittances in Foreign Exchange (Immunities) Scheme, 1991, and the India Development Bonds Scheme, 1991, have also been notified by the Reserve Bank of India and published in the Gazette of India, Extraordinary, Part II, Section 3, sub- section (i), dated 20th September, 1991, and 21st September, 1991, respectively. 2. Apprehens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any proceeding under the Income-tax Act, 1961. 5. Similar immunities and exemptions are provided under sections 6 and 7 of the Act in relation to non-resident Indians or overseas corporate bodies owning the foreign exchange bonds and persons resident in India to whom the said bonds have been gifted by non-resident Indians or overseas corporate bodies. 6. The immunities and exemptions, referred to above, are however not available with regard to any foreign exchange which is required to be brought into India under any provisions of the Foreign Exchange Regulation Act, 1973, or the Income-tax Act, 1961, read with that Act and the period (including extended period, if any) within which such foreign exchange to be brought into India has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in the nature of gift as defined in section 2 of the Gift-tax Act, 1958, and liable to tax under that Act? Answer: Section 3(1)(b) of the Act provides that no inquiry or investigation will be commenced under any law against the person in receipt of any remittance in foreign exchange in accordance with the scheme notified for this purpose, viz., the Remittances in Foreign Exchange (Immunities) Scheme, 1991. Accordingly, it is not possible for any tax authority to contend, at any time, that the remittance was a gift and initiate proceeding under the Gift-tax Act, 1958. Question No.2: Whether the non-resident donor of any India Development Bond will be exempt from gift-tax? Answer: Yes, the non-resident donor will be exempt from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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