Foreign salary remittance – liberalised facility

By Vijay Kumar

ARE YOU

1. A citizen of a foreign state, resident in India, being an employee of a foreign company? Or

2. A citizen of India, employed by a foreign company outside India and in either case on deputation to the office /branch /subsidiary /joint venture in India of such foreign company?

Then, you can open, hold and maintain a foreign currency account with a bank outside India and receive the whole salary payable to you for the services rendered to the office/branch/subsidiary/joint venture in India of such foreign company, by credit to such account, provided that income-tax chargeable under the Income-tax Act,1961 is paid on the entire salary as accrued in India.

Are you a citizen of a foreign state, resident in India being in employment with a company incorporated in India?

Then, you can open, hold and maintain a foreign currency account with a bank outside India and remit the whole salary received in India in Indian Rupees, to such account, for the services rendered to the Indian company, provided that income-tax chargeable under the Income-tax Act, 1961 is paid on the entire salary accrued in India.

A.P. (DIR Series) CIRCULAR NO 26/RBI., Dated: January 14, 2010