FEMA requires observation of its provisions in letter and spirit and if any contravention may land in penalties on the erring company and individuals. There are various conditions and stipulations in case of FDI , ODI , investment by individuals in foreign shares , purchase of assets in foreign countries , extending guarantees , availing ECBs , supplier's credit . In this column , I will discuss all intricacies and complications involving the interpretation of FEMA Act provisions in detail.
Thursday, September 30, 2010
How Much An Indian Resident can transfer to aquire foreign equity , immovable property , assets etc per financial year?
Up to $ 75,000 per Financial Year!
As per RBI guidelines, resident Indians are allowed to transfer up to $75,000 (around Rs 45 lakh year) abroad without its approval under the Liberalized Remittance Scheme (LRS) in a financial year. The earlier limit was $ two lakhs (Rs 90 lakh) a year. Indians can transfer $ 75000 lakh to acquire and hold immovable property, make investment in financial instruments or purchase any other asset abroad without any prior approval.
Hence , if a resident Indian wants to invest in shares of foreign company , he can invest up to $ 75,000 per financial year through his authorised dealer.
Please note that a Indian resident can transfer up to $ 75,000 for overseas investment per financial year and this is not an one time investment and he can make investment of $75,000 on each financial year basis.
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