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October 2011

A.P. (DIR Series) Circular No. 16, dated 15-9- 2011 — Credit of sale proceeds of Foreign Direct Investments in India to NRE/FCNR (B) accounts — Clarification.

By Gaurang Gandhi | Chartered Accountant
Reading Time 1 mins
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Presently, in terms of Schedule 3, 4 and 5 of the FEMA Notification No. 20/2000-RB, dated May 3, 2000, sale proceeds of Foreign Investments in India are eligible for credit to NRE/FCNR(B) accounts, where the purchase consideration was paid by the Non-resident Indians/Persons of Indian Origin out of inward remittance or funds held in their NRE/FCNR(B) accounts and subject to applicable taxes, if any.

This Circular has extended the said facility of credit of sale proceeds of Foreign Investments in India to NRE/FCNR(B) accounts, where the purchase consideration was paid by the Non-resident Indians/ Persons of Indian Origin out of inward remittance or funds held in their NRE/FCNR(B) accounts and subject to applicable taxes, if any, to NRI/PIO under Regulation 11 of the said Notification.

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