Remittance amenities obtainable to resident Indians and non-resident Indians
I’m confused between facility of remittance by a resident Indian upto for $2,50,000 with none questions and remittance from NRO account for schooling or property sale?
The schemes which you’re speaking about are two completely different schemes relevant to completely different set of individuals. The first scheme is Liberalised Remittance Scheme (LRS) which is out there to individuals who’re resident of India underneath the provisions of Foreign Exchange Management Act, (FEMA). Under LRS a resident Indian together with a minor is allowed to remit as much as $2.50 lakh yearly for permitted functions. The permitted functions embrace travelling overseas, items, donations, migration, schooling and medical bills of self and family members and so on. This facility can be used for making investments outdoors India together with shopping for property and fairness merchandise outdoors India.
The different facility which you’re speaking about remittances from NRO account is out there to individuals who’re Non-Resident Indians (NRI) underneath the provisions of FEMA. This facility is out there to Indian citizen residing overseas in addition to to the individuals of Indian Origin as outlined underneath the FEMA guidelines. These individuals are allowed to remit upto $10 lakh yearly from India.
Since balances in NRE and FCNR account are totally repatriable with none restrict, the annual restrict of 10 Lakhs USD applies solely to remittances from NRO account of the NRIs.
In addition to this facility of annual remittance upto $10 lakh yearly NRIs are allowed to remit sale consideration in respect of two resident home throughout their life time.
Balwant Jain is a tax and funding knowledgeable and may reached on jainbalwant@gmail.com and @jainbalwant on Twitter.
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