Foreign Exchange Management (Remittance of Assets) Regulations, 2016

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..... tance of Assets. On a review it is felt necessary to revise the regulations issued under the Foreign Exchange Management (Remittance of Assets) Regulations, 2000 , as amended from time to time. Accordingly, in consultation with the Government of India, the said regulations have been repealed and superseded by the Foreign Exchange Management (Remittance of Assets) Regulations, 2016 ( Notification No. FEMA 13(R)/2016-RB dated April 1, 2016 , hereinafter referred to as Remittance of Assets Regulations). 2. Some key definitions in the regulations are: a) A Non-resident Indian (NRI) is a person resident outside India who is a citizen of India b) A Person of Indian Origin (PIO) is a person resident outside India who is a citizen o .....

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..... the duration of which is not more than three years. 3. The salient features of the Remittance of Assets regulations are given as under: a) Remittance of capital assets in India held by a person whether resident in or outside India would require the approval of the Reserve Bank except to the extent provided in the Act or Rules or Regulations made under the Act. b) In terms of regulation 4(1) of the Remittance of Assets regulations, ADs may allow remittance of assets, up to USD one million per financial year, by a foreign national (not being a PIO or a citizen of Nepal or Bhutan), on submission of documentary evidence, in case: I. the person has retired from employment in India; II. the person has inherited the assets from a .....

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..... ables in India and not by borrowing from any other person or a transfer from any other NRO account and if such is found to be the case, the account holder will render himself/ herself liable for penal action under FEMA. e) In terms of regulation 4(3), ibid, ADs may allow remittances by Indian companies under liquidation on directions issued by a Court in India. f) In terms of regulation 5, ibid, ADs may also allow Indian entities to remit their contribution towards the provident fund/ superannuation/ pension fund in respect of their expatriate staff resident in India but not permanently resident in India. g) In terms of regulation 6, ibid, ADs may permit remittance of assets on closure or remittance of winding up proceeds of bra .....

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