Repatriation Of Assets

Which assets can be repatriated outside India?

Ans. Following assets can be repatriated:

  • Deposit with a Bank/Firm/Company,
  • Provident fund balance or superannuation benefits
  • Amount of claim or maturity proceeds of Insurance policy
  • Sale proceeds of shares, securities, immovable property or any other asset held in India.

What is included in current income?

Ans. Dividend, Interest, Rent etc. is included in current income which is freely permitted for repatriation, net of Income Tax.

On what grounds can special permission of the RBI be obtained for repatriation of funds in excess of the limits specified?

Ans. One of the grounds of obtaining special permission of RBI is on the hardship caused to such a person if remittance from India is not made. Further, RBI has full power and authority to permit repatriation without any limit.

What remittance facilities are available to students going abroad for studies?

Ans. Students going abroad for studies are treated as Non- Resident Indians (NRIs) and are eligible for all the remittance facilities available to NRIs under FEMA. As non-residents, they will be eligible to receive following remittances from India:

a. up to USD 100,000 from close relatives in India, on self-declaration, towards maintenance, which could include remittances towards their studies
b. up to USD 1 million per financial year, out of sale proceeds of assets / balances in their NRO account maintained with an Authorised Dealer bank in India and
c. Individual may avail of exchange facility under LRS for an amount in excess of USD 250,000, if it is so required.

How a person resident outside India may remit winding up proceeds of Branch/office (Other than Project Office) established by him in India?

Ans. A Branch/office established in India by a person resident outside India should apply to the Authorized Dealer with the following documents:

A. Copy of the RBI’s permission for establishing the Branch/office in India;
B. Auditors certificate
C. Confirmation from the applicant that no legal proceedings in any Court in India are pending and there is no legal impediment to the remittance
D. Report from the Registrar of Companies regarding compliance with the provisions of the Companies Act, 2013 in case of winding up of the office in India

Applicable taxes should have been paid for in India.

Can an NRI remit funds outside India from their NRO account?

Ans. NRI is permitted to make outward remittances from her NRO account subject to satisfying the documentation requirements and conditions.

How can an NRI remit funds outside India from her NRO account?

Ans. An NRI is required to submit the following documents to their AD Bank to remit funds outside India:

  • Form 15CA – a self -declaration
  • Form 15CB – a Chartered Accountant’s Certificate
  • FEMA Declaration/ Form A2
  • Documentary proof of the sources of the funds
  • Acquisition documents of the asset liquidated

Can different remittances be made from different Banks?

Ans. No. Remittances in more than one installment in a Financial year has to be made through the same AD Bank.

Whether an Indian entity can remit the amount being its contribution towards the provident fund/superannuation/pension fund in respect of the expatriate staff who is not permanent resident?

Ans. Yes, an Indian entity in India may remit the amount being its contribution towards the provident fund/superannuation/pension fund in respect of the ‘expatriate staff’who is resident in India but not permanently resident.