Query on FCTRS

Dear Members

Is FCTRS required to be filed for transmission (due to death) of equity shares in a indian company from a non resident to a resident heir ?

If yes, will the company file it in FIRMS or the resident transferee ? Will it be through AD bank ? As there is no inflow/outflow of fund will the bank act ?

Please advise.

Regards

CA CS Dipjyoti Majumdar

Replies (2)
Quick Summary
This discussion clarifies whether Form FC-TRS is required when equity shares in an Indian company are transmitted from a non-resident to a resident heir due to death. The consensus is that FC-TRS is not needed for transmission by operation of law, only for sales or gifts. The resident heir should provide succession documents and a death certificate directly to the company or its Registrar and Transfer Agent (RTA) to update records, as there's no fund flow involved and AD banks are not required.

Form FC-TRS is strictly required for the transfer of shares via sale or gift, not for transmission by operation of law. Therefore, no FC-TRS needs to be filed on the FIRMS portal by either the company or the resident heir. The AD bank is also not involved, as there is no fund flow. To execute the transition, the resident heir simply needs to submit the valid legal succession documents and death certificate directly to the Indian company or its RTA to update the statutory registers.

Dear Sir

Thanks for your valued views.

In this regard, my query is how will then RBI know about change in status of shareholding from non resident to resident. Is this not a significant change having crucial impact.

Regards

CA CS Dipjyoti Majumdar

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