Vinod (CA in Practice) (445 Points)
21 October 2011
Hi,
One of my friend at Dubai is in shortage of money to settle his bank loan there.
Let me know the procedure to send UAE Dirhams to him from India ? He cannot leave UAE without settleing the loan amount equallant to around 25 lakhs INR.
Please advise.
vinodaca74 @ gmail.com
sudhakar
(article )
(90 Points)
Replied 21 October 2011
Do outard remttances to him.. for that you need to approach any AD category bank tell them u need to remitt funds under LRS scheme (i.e liberised remittances scheme0
The same will reqiure a declaration from your side & there are some uper limit & other requirment also which the AD will let you know.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 28 October 2011
Under LRS scheme the funds can be transferred ONLY for transactions that are permitted under FEMA.
Giving of loan to friend (Non-resident) is NOT allowed however you may gift the said amount to your friend under the LRS .
Anuj
+91-9810106211
femaquery @ gmail.com
RAJ KUMAR
(FINANCE MANAGER)
(1393 Points)
Replied 28 October 2011
WHETHER IT ATTRACTS TDS PROVISIONS OR NOT?
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 28 October 2011
Yes, if the gift is made then there are implications under sec 56 of Income Tax Act,1961.
Anuj
+91-9810106211
femaquery @ gmail.com
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