Repatriation of NRI Income from and to India
THE Committee to Review the Facilities for Individuals under FEMA, 1999 has suggested in its Report that necessary clarifications may be issued forthwith clarifying the position that income and sale proceeds of assets held abroad by NRIs who have returned to India for permanent settlement and income and sale proceeds of assets held abroad through remittances under Liberalised Remittance Scheme (LRS) need not be repatriated.
RBI has clarified:
++ in terms of sub-section 4 of Section (6) of FEMA, 1999, a person resident in India is free to hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India.
++ an investor can retain and reinvest the income earned on investments made under the Liberalised Remittance Scheme.
Circular No. 37/RBI, Dated: October 19, 2011