Fema act,1999

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2012 In what ways Person Resdient in India can repattrate or remit the foreing currency by way of deposit from their foreign relatives or soomeone else to India and what is the permissible limit?

Vishal D Shah

Vishal D Shah (Expert)
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31 May 2012 Little confused. Is money coming in India or going out?

Request to re-frame the question.

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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24 July 2024 Under the Foreign Exchange Management Act, 1999 (FEMA), a person resident in India can receive foreign currency from their foreign relatives or others through certain permissible channels. Here are the ways and permissible limits for repatriating or remitting foreign currency into India:

### Ways to Repatriate or Remit Foreign Currency:

1. **Gift from Relatives:**
- A person resident in India can receive foreign currency as a gift from their relatives residing outside India.
- Relatives include spouse, brother or sister, brother or sister of the spouse, any lineal ascendant or descendant, and spouse of the above.
- There is no specific limit prescribed under FEMA for receiving gifts from relatives in foreign currency. However, it should be bona fide and not in contravention of any FEMA regulations.

2. **Inward Remittance:**
- Foreign currency can be remitted to India through normal banking channels by any person from abroad.
- This can include remittances for various purposes such as gifts, education, medical expenses, investments, etc.
- There are no restrictions on the amount that can be remitted, but it should be declared and accounted for properly.

### Permissible Limits and Documentation:

1. **Declaration and Reporting:**
- All remittances must be made through authorized banks in India.
- The recipient (person resident in India) needs to declare the purpose of remittance and provide necessary documentation as per RBI guidelines.
- Banks may require Form A2 (Application cum Declaration for Remittance) or other relevant forms to be filled out for processing remittances.

2. **Documentation Required:**
- For gifts from relatives, a declaration stating the relationship and purpose of remittance may be required.
- For remittances from non-relatives, documentation supporting the purpose of remittance (like invoice for education expenses, medical bills, etc.) may be needed.

### Limits and Considerations:

- While there is no specific limit on the amount of foreign currency that can be received as gifts from relatives, it is important to ensure that the transactions are genuine and do not violate any FEMA provisions.
- Any large remittance or transaction may be subject to scrutiny by the bank or RBI to ensure compliance with FEMA regulations.

### Conclusion:

To repatriate or remit foreign currency to India from foreign relatives or others:
- Use authorized banking channels.
- Declare the purpose of remittance and provide necessary documentation.
- Ensure compliance with FEMA guidelines and any specific requirements imposed by RBI or authorized banks.

For specific cases or larger transactions, consulting with a qualified chartered accountant or legal advisor familiar with FEMA regulations is advisable to navigate the process smoothly and legally.

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