Advise with reason on availing foreign exchange facility under Foreign Exchange Management Act, 1999, for: A person who is resident, but not permanently resident in India, this a citizen of a foreign state other than Pak

CS Executive · Economic and Commercial Laws · PYQS · June 2019
Advise with reason on availing foreign exchange facility under Foreign Exchange Management Act, 1999, for: A person who is resident, but not permanently resident in India, this a citizen of a foreign state other than Pakistan desires to remit his total net salary to his spouse without any limit and without being questioned about his expenses for survival in India. Can he do so or not? Is there any limit ?

Answer & Explanation:

Yes, he may make remittance up to his net salary (after deduction of taxes, contribution to provident fund and other deductions). If an individual remits any amount under the Liberalised Remittance Scheme in a financial year, then the applicable limit for such individual would be reduced from USD 250,000 (US Dollars Two Hundred and Fifty Thousand Only) by the amount so remitted. A person who is resident but not permanently resident in India and is a citizen of a foreign State other than Pakistan or is a citizen of India, who is on deputation to the office or branch of a foreign company or subsidiary or joint venture in India of such foreign company, may make remittance up to his net salary (after deduction of taxes, contribution to provident fund and other deductions).

Topics: Foreign Exchange Management Act, 1999

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