Query on Capital Gains & FEMA

yes he can  

Thanks for the reply:-)

vl there be any impact/restriction in FEMA

Yes, he can purchased the property outside India.

Thanks for Ur reply Sir..

Will there be any impact of FEMA. As per Sec 3 of FEMA Act, Acquisition of properrty outside India is restricted. Is there any relaxation??? kindly Clarify

It is a capital account transaction as it alters asset/liability position of resident. 

Please read section 6 of FEMA for more clarification. 

There are some restrictions, but however,  RBI permission is required to acquire property outside india. 

Hi, 

other related circular as only one file can attached

Thanks a lot :-)

Ashish Sir, thanks for clarifying and for sharing info n circular:-)

As mentioned by Ashish, its very much permitted for a Resident Indian to acquire an immovable property outside India complying with the terms and conditions of FEMA Regulations.

Further for your information,exemption from capital gain is available for acquisition of a house even if it is situated in another country.  The similar decision was given by the Appellate Authority in the case of Mrs. Prema P. Shah v. Income-tax Officer reported in 282 ITR 211 (Mum.). However the Higher Courts may also give an unfavourable decision.

So such reinvestment outside India can be made keeping in mind that the subject matter is not free from doubt and litigation as it is still not a settled law.