fiogf49gjkf0d
New Page 1
Part C:
FEMA
Given below are the highlights of certain RBI
circulars, press notes and notifications
37 A. P. (DIR Series) Circular No. 26, dated
January 14, 2010
Remittance of Salary – Relaxation
Notification No. FEMA 199 / 2009 – RB, dated
September 30, 2009
Presently, a foreign national resident in India,
being an employee of a foreign company or a citizen of India employed by a
foreign company outside India, and in either case on deputation to the office /
branch/ subsidiary / joint venture in India of such foreign company, can open,
hold and maintain a foreign currency account with a bank outside India and
receive the salary payable to him by credit to such account, subject to the
conditions mentioned therein, which inter alia, include that the amount to be
credited to such account shall not exceed 75 per cent of the salary accrued to
or received by such person from the foreign company.
This circular has liberalised the above facility.
Accordingly,
(i) A citizen of a foreign country, resident in
India, being an employee of a foreign company or a citizen of India, employed
by a foreign company outside India and in either case on deputation to the
office / branch / subsidiary / joint venture in India of such foreign company
can open, hold and maintain a foreign currency account with a bank outside
India and receive the whole salary payable to him for the services rendered to
the office / branch / subsidiary / joint venture in India of such foreign
company, by credit to such account, provided that income-tax chargeable under
the Income-tax Act,1961 is paid on the entire salary as accrued in India.
(ii) A citizen of a foreign country resident in
India, being in employment with a company incorporated in India may open, hold
and maintain a foreign currency account with a bank outside India and remit
the whole salary received in India in Indian Rupees to such account, for the
services rendered to the Indian company, provided that income-tax chargeable
under the Income-tax Act, 1961 is paid on the entire salary accrued in India.
