| 1. Current Income
Repatriation
All types of income in the nature of Interest, Dividends,
Rent, Mutual Fund distribution from any type of
deposit, investment or properties is permitted for
repatriation net of Income tax.
This also covers income earned from
business in India by a Non-resident as proprietor,
Partner or joint venturer.
2A. Immovable Property
The sale proceeds of the property
is permitted for repatriation as under:
I.
Without RBI permission
A.
Property held for
more than 10 years: NRIs/PIOs are allowed
to repatriate the funds held in their NRO A/c up
to US$ 100,000 per calendar year being sale proceeds
of immovable property held by them for period
of not less than 10 years subject to payment
of taxes. This has been enhanced to an overall limit
(including remittances of proceeds of inherited
assets, remittance for education and medical purposes)
of US$ 1 million, which is effective
from 13 January 2003 subject to further review by
RBI.
2B.
Other
Properties:
a)
The property was acquired by the seller
in accordance with the provisions of foreign exchange
law in force at the time of acquisition.
b) It is
sold after 3 years of date of Purchase Deed or final
payment of Purchase consideration which ever is
later. However, the above lock in period
of 3 years is not applicable in case of such property
sold by NRI/PIO on or after 19.08.2002
c)
Only up to the value of Purchase consideration
paid in Foreign Exchange.
II.
With RBI permission
In case of a non-resident who had acquired immovable
property in India, and who is not eligible under
I above, sale proceeds of such
immovable property can be repatriated by obtaining
special permission of the Reserve Bank of India
on the ground of hardship.
3. Legacy, Bequest, Inheritance
The sale proceeds/realisation of
assets is permitted for repatriation as under:
a) Without RBI Permission
NRIs/PIOs will be able to remit up to US$100000
per calendar year out of the assets in India acquired
by them by way of inheritance/legacies. This has
been enhanced to an overall limit (including remittances
of proceeds of immovable property held for more
than 10 years, remittance for education and medical
purposes) of US$ 1 million , which
is effective from 13 January 2003 subject to further
review by RBI.
b) With RBI permission
Until further information on the above(a) and for
any other assets, repatriation is allowed only after
obtaining special permission of
the Reserve Bank India on the ground of hardship
etc. and subject to conditions as specified in the
permission.
4. OTHER ASSETS(Without repatriation Rights)
The sale proceeds/realisation of
assets is permitted for repatriation as under:
- Deposits with Banks/Firms/Cos.
- P.F/Super Annuation Balance
- Life Insurance Maturity proceeds/claims
- Sale proceeds of Shares, Securities,
- Any other assets/Immovable Property
Repatriation is permitted (Net of
Tax) only by obtaining special permission
of the Reserve Bank India on the ground of hardship
etc. and subject to conditions as specified in the
permission.
5.
NRIs/PIOs are allowed to repatriate the
funds held in their NRO A/c for the following purposes:
a.
up to USD 30000 per academic year to meet
expenses in connection with education of their children.
b.
upto USD 100000 to meet the medical expenses
abroad of the account holder or his family members.
However, this individual limits
has been enhanced to an overall limit (i.e. aggregate
of remittances of proceeds of immovable property
held for more than 10 years, proceeds of inherited
property, remittance for education and medical purposes)
of US$ 1 million , which is effective from 13 January
2003 subject to further review by RBI.
6. The NRI's
are eligible to apply for repatriation of Income
for all the years from 1996-97 onwards.
7. SBI bonds -
Subsequently Permitted.
The NRI BONDS, 1988
and NRI BONDS ( Second Series)
issued by the State Bank of India which matured
in 1996 - 98 were issued without repatriation right
as to principle as well as interest. However the
Reserve Bank of India subsequently permitted repatriation
of the maturity value comprising interest on the
bonds being in the nature of current income. Many
bondholders have not exercised the right to repatriate
the income on maturity of these bonds. You can exercise
repatriation right even now. Roughly, the reparability
works out at about 30% of the maturity value.
The procedure for repatriation of
Income/Assets shall be provided at request.
We do provide assistance
in completing the procedural and certification work
for remittances of Capital as well current income
with and without RBI permission.
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