DAC Consulting - FEMA – Going Abroad for employment – POST 3

What type of account do I open?

Uses of these accounts

What do I do when I sell a Property

NRO vs NRE - What is this....

CASE STUDY: A Client was to proceed overseas the purpose of employment. What must he do?

First :  Ensure you advise your bank/s that your status will change from resident to Non resident from the point of view of FEMA (do not confuse with IT ACT). Redesignate your accounts as NRO – i.e. Nonresident ordinary account.

Second: Setup a NRE rupee account – NRE being Nonresident external rupee account. This account will provide you with the flexibility of repatriating the money, no question asked.

Third:  Contact me when remittance is sent to ensure that you get the best value for your remittance to India.

Fourth : If you plan to purchase your property, track the exchange rate through a consultant like me, ensure you get the best rate for your foreign currency. Purchase land from your NRE account. In case of sale, follow RBI regulation for disclosure and remittance of value outside India.

Fifth: Do not remit to your NRO account as the funds would not be convertible to Foreign currency.

For further details contact the author at dominic@dacconsulting.in.

The author:  Dominic Christy  a professional banker for over 23 years  and  now Chief consultant of DAC Consulting & Associates brings abundant expertise in Foreign exchange and Treasury Management,  Project finance and banking laws.

The author invites requests from readers to suggest topic they may wish to have clarity on. Please visit us  at www.dacconsulting.in