RBI/2014-15/307 A.P. (DIR Series) Circular No. 38 November 20, 2014 To All Category – I Authorised Dealer Banks Madam/ Sir, Acquisition/Transfer of Immovable property – Payment of taxes : 1. Attention of Authorised Dealers in Foreign Exchange is invited to Foreign Exchange Management (Acquisition and Transfer of immovable property in India) Regulations, 2000 notified vide Notification No. FEMA 21 /2000-RB dated 3rd May 2000 as amended from time to time. 2. It has been observed that doubts persist in the members of public regarding requirement of payment of taxes while undertaking property transactions under these regulations. 3. In this connection, it is clarified that transactions involving acquisition of immovable property under these regulations shall be subject to the applicable tax laws in India. 4. Reserve Bank has since amended the Principal Regulations through the Foreign Exchange Management (Acquisition and Transfer of immovable property in India) (Amendment) Regulations, 2014 notified vide Notification No. FEMA.321/2014-RB dated September 26, 2014(given below) c.f. G.S.R. No.733(E) dated October 17, 2014. 5. Authorised Dealers may bring the content of this circular to the notice of their constituents concerned. 6. The directions contained in this circular have been issued under Section 10(4) and 11(1) of the Foreign Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law. Yours faithfully (C D Srinivasan) Chief General Manager ********************************************************************************* RESERVE BANK OF INDIA FOREIGN EXCHANGE DEPARTMENT CENTRAL OFFICE MUMBAI-400 001 Notification No.FEMA. 321/2014-RB September 26, 2014 1. Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) (Amendment) Regulations, 2014 : In exercise of the powers conferred by clause (i) of sub-section (3) of Section 6, and sub section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendment in the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000 (Notification No. FEMA. 21/ 2000 -RB dated May 3, 2000), namely: 2. Short title and commencement : (i) These Regulations may be called the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) (Amendment) Regulations, 2014. (ii) They shall come into force from the date of their publication in the Official Gazette. 3. Amendment of the regulations : In the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000 (Notification No. FEMA 21/2000-RB dated May 3, 2000), after regulation 8, the following shall be added namely: “9. Any transaction involving acquisition of immovable property under these regulations shall be subject to the applicable tax laws in India. (C D Srinivasan) Chief General Manager
Posted on: Mon, 24 Nov 2014 05:37:19 +0000
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