Categories: Bank News

Remittance of salary outside India

When a foreign citizen or a citizen of India, being employed by a foreign company outside India is deputed to India on an official duty to their branch/subsidiary/joint venture/Group Company, may credit the whole salary received by him/her at a bank account maintained abroad. Such remittance is allowed subject to a condition that he/she has to pay income tax chargeable under IT Act, 1961 for the entire salary accrued in India.

The latest communiqué of RBI says that the term ‘company’ under regulation 7(8) of notification no. FEMA 10 shall also include ‘Limited Liability Partnership’ defined under LLP Act.2008. RBI has since amended the Principal Regulations through FEMA (Foreign currency account by a Person Resident India) (Amendment) regulations vide c.f.G.S.R No. 913(E) dated 24.12.2014.

Surendra Naik

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Surendra Naik

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