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An outward remittance (aka wire transfer outward remittance) is the process of transferring money (in the form of foreign exchange) from a worker or business, to another country. Incredibly, money transferred this way is now on par with the amount given in financial aid to some countries.
Upto $1 million can be remitted outside India or transferred to your NRE account every year subject to some procedural compliances from NRO account. The money in NRO account can also be used for making regular local payments in rupee like rents for property, taxes.
The following documentation is required from the remitter: Designating a branch of an authorised dealer bank through which all the remittances will be made. Furnishing Form A2 for purchase of foreign exchange. Providing Permanent Account Number (PAN)
How much money can an NRI repatriate out of India? An NRI can freely transfer without any upper transaction limit from NRE and FCNR accounts. On the other hand, an NRI can remit only up to 1 USD million out of the balances of an NRO account, provided they meet the eligibility criteria. 2.
As the name suggests, outward remittance refers to sending money out, into the bank account of a beneficiary living overseas (except Nepal and Bhutan) by a resident Indian account holder. Ideally, these transfers can only be made in ance with purposes listed by the Foreign Exchange Management Act (FEMA) of 1999.
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under Financial derivative transactions. S0021 Payments made on account of sale of share under Employee stock option. S0022 Investment in Indian Depositories Receipts (IDRs).
Liberalised Remittance Scheme (LRS) was brought into effect by the Reserve Bank of India in 2004. ing to it, residents of India can remit a maximum of $250,000 within a given financial year to individuals living overseas. This includes both capital and current account transactions.
The said Rule provides in case of foreign payment, the person making the payment is required to furnish Form 15CA and 15CB subject to certain exceptions. Form 15CB is a certificate issued by a Chartered Accountant as regards to rate of tax to be deducted on foreign payment.

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