Foreign exchange management rules 2011

A  non-resident as per latest FEMA rules  (Foreign exchange managment act  or rules) who is working in singapore for past two years in a company which is a sister concern of an Indian company which send him to singapore , he receives salary from the indian company in india and not is singapore and the same salary is credited to his bank account in india.

As per the FEMA regulations or rules is there any prohibition on the transaction of remiting salary on regular basis to his indian account or is there any necessity to take prior permission of RBI or Government or is there any limit up to which it can be done or is there any authorised bank or dealer in which he should deposit the same

Also tell me in this case whether the indian bank account will automatically get converted into NRO account or not and what is NRO account and what are the tax implications of the same?

Replies (1)

Here as per FEMA there shall be no issue involved if the salary is being transferred in NRO Account.

NRO account can be opened by giving an letter to bank which shall convert the existing accounts into NRO.

However for the purpose of Income Tax Act it shalkl be better if the salary is first received in foreign account of employee in singapore and then transferred back to India.

 

Anuj

+91-9810106211

femaquery @ gmail.com

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