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October 2011

A.P. (DIR Series) Circular No. 20, dated 16-9-2011 — Meeting of medical expenses of NRIs close relatives by Resident Individuals.

By Gaurang Gandhi | Chartered Accountant
Reading Time 1 mins
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Presently, a resident can make payment in rupees for meeting expenses on account of boarding, lodging and services related thereto or travel to and from and within India of a person resident outside India who is on a visit to India.

This Circular has expanded the meaning of ‘services related thereto’ as stated in Regulation 2(i) of Notification No. FEMA 16/2000-RB, dated May 3, 2000 by including medical expenses therein. As a result, a resident individual can now pay for the medical expenses incurred in India by his NRI close relative (relative as defined in section 6 of the Companies Act, 1956).

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