Repatriation Procedures

Earning money has been one of the vital reasons for Indians shifting
base to other countries. However, every NRI is keen to repatriate
his current income and assets to India or to hold it as convertible
Forex in India. The Indian Government has liberalized provisions
as to repatriation for all the assets either acquired as NRI from
Forex or Rupee Funds or which was acquired as a resident in India.

The government of India and the RBI has set up certain directives
to facilitate NRI repatriation to India.

1. Current Income Repatriation

   All incomes either in the nature of interest, dividends, rent,
   MFund distribution from any type of deposit, investment or properties
   is allowed for repatriation net of income tax in India. This includes
   income earned from business in India by a NRI as proprietor, partner
   or joint venture entity.

2. Immovable Property

   The sale proceeds of the property is permitted for repatriation
   as under:

   1. Exempted from RBI permission
      1. Property held for more than 10 years:
         NRIs/PIOs are permitted to repatriate the funds held in
         their NRO A/c up to US$ 100,000 a year where sale proceeds
         of immovable property held by them for period of not less
         than 10 years is subject to payment of taxes.
         1. The property was acquired by the seller in accordance
            with the provisions of foreign exchange law in force
            at the time of acquisition.
         2. If the property is sold after 3 years of date of
            Purchase Deed or final payment of Purchase consideration
            which ever is later. However, the above lock in period
            of 3 years is not applicable in case of such property
            sold by NRI/PIO on or after 19.08.2002
         3. Further exemption from RBI permission comes only
            up to the value of purchase consideration paid in
            Foreign Exchange.
   2. RBI permission essential

      For NRI who had acquired immovable property in India, and
      who is not eligible under clause I above. Sale proceeds of
      such immovable property can be repatriated by obtaining special
      permission of the RBI on the ground of adversity.

3. Inheritance, Legacy or Bequest

   The sale proceeds or realization of assets can be allowed for
   repatriation only under the following grounds.

   1. Exempted from RBI Permission:
      NRIs/PIOs will be able to remit up to US$100000 per calendar
      year out of the assets in India acquired by them by way
      of inheritance/legacies. This has been enhanced to an overall
      limit (including remittances of proceeds of immovable property
      held for more than 10 years, remittance for education and
      medical purposes) of US$ 1 million.
   2. RBI permission essential:
      Besides the clause I seeking exemption from RBI permission
      and for any other assets, repatriation is allowed only after
      obtaining special permission of the Reserve Bank India on
      specific reasons such as adversity and subject to conditions
      as specified in the permission.
4. Other assets (Without repatriation Rights)
   The sale proceeds or realization of NRI assets is permitted for
   repatriation as follows:

   – Deposits with Banks/Firms/Companies.
   – P.F/Superannuation Balance
   – Life Insurance Maturity income/claims
   – Sale proceeds from shares & securities
   – Any other assets/Immovable Property

   NRI repatriation is allowed only by obtaining special permission
   of the RBI on the ground of adversity etc. and subject to
   conditions as specified in the permission.

5. NRIs/PIOs are allowed to repatriate the funds held in their
   NRO A/c for:

   i. education of their children, where they can spend up to USD
   30000 per academic year.
   ii. the medical expenses abroad of the account holder or his family
   members up to USD 100000.

   Although, this individual limits has been enhanced to an overall
   limit of US$ 1 million, as effective from 13 January 2003 subject
   to further review by RBI. This can be considered aggregate of
   remittances of proceeds of immovable property held for more
   than 10 years, proceeds of inherited property, remittance for
   education and medical purposes.