Transfer of money from USA

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CA SANDIP PATEL (Querist)
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04 April 2011 hello sir, my client's uncle is abroad (USA) they want to transfer Rs.10 lac to my client's account in india so my question is that {1}whether is it permissible?
{2} what is the limit for such type of transaction?
{3}what is the procedure for such type of transaction?
{4} RBI permission necessary?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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05 April 2011 1.The same is permissible but first determine the nature of such transaction i.e. loan/gift/investment in equity in your clients business.
2.The answer shall depend on nature of such transaction.
3.same as above.
4.same as above.

CA SANDIP PATEL

CA SANDIP PATEL (Querist)
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05 April 2011 Thanks Anuj Sir

This is a loan from uncle.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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05 April 2011 An individual resident in India may borrow a sum not exceeding USD 250,000 or its equivalent from his close relatives outside India, subject to the conditions that—
a. the minimum maturity period of the loan is one year;
b. the loan is free of interest; and
c. the amount of loan is received by inward remittance in free foreign exchange through normal banking channels or by debit to the NRE/FCNR account of the non-resident lender.

‘Close relative’ means relative as defined in section 6 of the Companies Act, 1956.

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