Foreign remittance is a transfer of money from a sender in one country to a receiver in another. When you send money from India to your family or relative abroad, it is an outward remittance. When you receive money in India from a foreign country, it is inward remittance.
Can we do the remittance for foreigners for the purpose of maintenance?
Yes. Individuals are free to open, hold and maintain foreign currency accounts with a bank outside India for making remittances under the Scheme without the prior approval of RBI.
What are all required documents in foreign payments?
Retail Outward Remittance Application – A2 cum LRS Declaration.
What are the charges of outward remittance?
| Description of Charges | Forex Services |
|---|---|
| Foreign Exchange Transactions | |
| Remittance Outward* | Commission : Upto USD 500 or equivalent Rs. 500/- flat Above USD 500 or equivalent Rs. 1000/- flat |
| Remittance Inward | No Charge |
| Other Foreign Exchange Transactions |
Is TDS applicable on foreign remittance?
When it comes to sending remittances as gifts to NRI, according to the taxation rules on gifts since July 2019, TDS is applicable if the value of the gifts exceeds Rs 50,000 in a financial year. NRIs will need to disclose such gifts and pay the tax as per the tax rules.
How often does a foreign bank have to certify a covered bank?
A covered financial institution must obtain a certification from each foreign bank for which it maintains a correspondent account “at least once every three years” to maintain the safe harbor.5
Who is authorized by the Reserve Bank to sell foreign exchange for travel purposes?
Ans. An Authorised Dealer (AD) is any person specifically authorized by the Reserve Bank under Section 10 (1) of FEMA, 1999, to deal in foreign exchange or foreign securities (the list of ADs is available on ) and normally includes banks. Q 2. Who are authorized by the Reserve Bank to sell foreign exchange for travel purposes?
How to pay for sale of foreign exchange in India?
However, if the sale of foreign exchange is for the amount equivalent to Rs 50,000/- and above, the entire payment should be made by way of a crossed cheque/ banker’s cheque/ pay order/ demand draft/ debit card / credit card / prepaid card only. Q 7. Is there any time-frame for a traveller who has returned to India to surrender foreign exchange?
Do you need approval for foreign shareholding in company?
Answer: As long as the foreign shareholding in the entity remains the same and there is no corporate action pursuant to the sector being brought under approval route, approval is not required.
