REMITTANCE FACILITIES TO NRIS/PIOS
Remittance facilities for Non Resident Indians (NRIs)/ Persons of Indian Origin (PIO) and Foreign Nationals
The Regulations for transfer of assets outside India by a person whether resident in India or not are given in the Notifications No.FEMA 13/2000-RB and FEMA 21/2000-RB both dated May 3, 2000 and the related amendments to these Notifications. Accordingly, remittance of capital assets in India held by a person whether resident in or outside India would require approval of the Reserve Bank except to the extent provided in FEMA or Rules or Regulations made thereunder.
Definitions of NRI/PIO
NRI is defined as a person resident outside India who is citizen of India.
In terms of Regulation 2 FEMA Notification No.13 dated May 3, 2000, Non Resident Indian (NRI) means a person resident outside India who is a citizen of India. Person of Indian Origin (PIO) means a citizen of any country other than Bangladesh and Pakistan who had
- at any time held Indian passport or
- he or either of his parents or any of his grandparents was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 or
- the person is a spouse of an Indian citizen or a person referred to in (a) or (b).
Remittance of current income
Remittance of current income like rent, dividend, pension, interest etc. of NRIs/PIO even those who do not maintain NRO Account is freely allowed, on the basis of 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 NRIs/PIO have the option to credit the current income to their Non Resident (External) Rupee account, provided the authorized dealer bank is satisfied that the credit represents current income of the non resident account holder and income tax thereon has been deducted/ provided for.
Remittance of assets by a foreign national of non-Indian origin
A foreign national of non-Indian origin who has retired from an employment in India or who has inherited assets from a person resident in India or who is a widow of an Indian citizen who was resident in India, may remit an amount not exceeding USD one million, per financial year (April-March), on production of documentary evidence in support of acquisition/ inheritance of assets, an undertaking by the remitter and certificate by a Chartered Accountant in the formats prescribed by the Central Board of Direct Taxes vide their Circular No.10/2002 dated October 9, 2002.
These remittance facilities are not available to citizens of Nepal and Bhutan.