NRIs CORNER - REMITTANCE OF FUNDS / ASSETS OUTSIDE INDIA

1. Foreign Exchange Regulations Act, 1973 had clear instructions and procedures laid down for repatriation of almost all incomes arising in India which were non-repatriable. These included rental income, interest from firms, share of partnership firms, interest on debentures etc. 
2. Foreign Exchange  Management Act, 1999 had not provided for a specific clause in this regards, although the provisions of "Permissible Debits" under Foreign Exchange Management (Deposit) Regulations, 2000 clearly mention "remittance outside India of  current income in India of the account holder net of applicable taxes". 
3. Hon'ble Finance Minister while presenting the Union Budget, 2002-03 in his Budget Speech has proposed that " NRIs will be free to repatriate in foreign currency their current earnings in India such as rent, dividend, pension, interest and the like based on appropriate certification.
4. Subsequently, the Reserve Bank of India vide A.P. (DIR) Series Circular No. 45 dated. 14th May, 2002 has clarified / instructed bankers to allow repatriation of current income like rent, dividend, pension, interest etc. of NRIs who may not be maintaining NRO account. For the said purpose, the Reserve Bank of India has prescribed for the bankers to obtain :
   1. (i)Appropriate certificate of Chartered Accountant certifying eligibility of proposed remittance, and
   2. (ii)Further, certifying that applicable taxes have been paid / provided for.

1. .01      Sale proceeds of house property hitherto were repatriable to the extent of   foreign exchange equivalent of purchase price / cost of acquisition, provided, an NRI had purchased such property and held such property for 3 years and purchased the same out of balances held in Non Resident External (NRE) / Foreign Currency Non Repatriable (FCNR)  or by way of foreign exchange remittance from abroad, provided such property was held for a minimum period of 3 years.
2. .02 The Reserve Bank of India has removed the requirement of minimum holding period of 3 years. Accordingly, every case of sale of house property irrespective of period of holding will be eligible for repatriation benefits. (of course restrictions of repatriation of 2 residential properties only continues). 

1. Hitherto the principal amount of deposit held in Non Resident Non Repatriable (NRNR) account was non-repatriable.
2. Of course, the interest amount enjoy the benefits of tax exemptions as also repatriation.
3. W.e.f. 1st April, 2002 entire balances in NRNR account has been granted the benefit of repatriation. 
4. Accordingly, proceeds of deposits maturing on or after 1st April, 2002, account holder's Non Resident External account (NRE) which may be retained as such or be transferred to Foreign Currency Non Resident account or remitted / repatriated abroad.