Every NRI should know this FEMA Rules

SIBY HERALD

The Foreign Exchange Management Act (FEMA) came into effect in 1999 after the FERA act was revoked. Here are a few of its regulations that every nri should know.

Maintaining a bank account

You need to operate bank accounts that are specifically designated for NRIs. It’s advisable to have a trusted and well established banking partner to help you deal with overseas transactions.

Financial Investment

NRIs are allowed to make unlimited investment in repatriable or non-repatriable transactions. The only exceptions are small saving schemes or PPF (Public Provident Fund) that aim to encourage small savings by giving good returns and tax benefits.


Ownership and transfer of immovable properties
All NRIs and PIOs (Persons of Indian Origin) can purchase any kinds of commercial and residential real estate property in india.

 

Income for students

The Liberalized Remittance Scheme says that Indian students who are NRIs can receive a maximum of US$ 10 lakhs in a year from their NRO/NRE accounts or from profit gained from any property or estate. nri students are also eligible to receive US$ 2.5 lakhs per year for caring of close relations.

Repatriation of current and immovable assets

An nri can send money back to india gained from foreign repatriable assets like rent received from a building owned abroad. There are more restrictions on immovable assets like property and lands because the nri can only be repatriated on his originally invested foreign fund. 


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