Subscribe to the Bombay Chartered Accountant Journal Subscribe Now!

November 2016

Notification No. FEMA 5(R)/2016-RB dated September 8, 2016

By Gaurang Gandhi
Chartered Accountant
Reading Time 1 mins

CORRIGENDUM  – G.S.R. 389(E) – dated September 8, 2016

Foreign  Exchange  management  (deposit)  Regulations, 2016

By a Corrigendum dated September 8, 2016 published in the Gazette of india, extraordinary, Part-ii, Section 3, Sub-section (i), the following changes have been made to Notification No. FEMA 5(R)/2016-RB relating to Foreign exchange management (deposit) regulations, 2016: ­

Paragraph 6(3) of Schedule i has been substituted as under: ­

“loans  outside india – authorised dealers may allow their branches/correspondents outside india to grant loans to or in favour of non-resident depositor or to third parties at the request of depositor for bona fide purpose against the security of funds held in the NRE accounts in india and also agree for remittance of the funds from india, if necessary, for liquidation of the outstanding.”

Previously, third party loans could be given for bona fide purpose except for the purpose of relending or carrying on agricultural / plantation activities or for investment in real estate business. With this amendment restriction on user of funds has been removed.

Download PDF

You May Also Like

Reduction in Sale Price Due To Discount Given By Issue of Credit Notes Subsequent To the Invoice

35. Salary – Voluntary retirement – Exemption u/s. 10(10C) – Where assessee who had opted for voluntary retirement under Early Retirement Option Scheme on coming to know and on being advised that pursuant to a decision of Supreme Court would be entitled to exemption u/s. 10(10C) filed a revised return claiming deduction u/s. 10(10C), he would be entitled to exemption even though revised return had been filed beyond period stipulated u/s. 139(5) as default in complying with requirement being due to circumstances beyond control of assessee, Board would be entitled to relax requirement contained in Chapter IV or Chapter VI