Transfer of money from USA

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CA SANDIP PATEL (Querist)

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)

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)

05 April 2011 Thanks Anuj Sir

This is a loan from uncle.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)

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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