Abroad Maintenance Remittance in Trichy - FEX Forex Pvt. Ltd
Time and again, there have been reports on transfers being made outside India that have run into issues with the tax and regulatory authorities. Indian foreign exchange regulations are quite strict and it is important to be aware of these regulations while making any transfers/remittances outside India. The Reserve Bank of India (RBI), the apex bank in India and the regulator of foreign exchange dealings has laid down guidelines on remittance of funds outside India. There are separate guidelines for residents and non-residents.
Resident individuals are allowed to remit an aggregate sum of $250,000 per financial year (April to March) for any permissible current account or capital account transaction under the Liberalised Remittance Scheme (LRS) without any approval from RBI. This scheme is applicable only to resident individuals. A person is said to be resident in India if he/she has been in India for more than 182 days in the preceding financial year. However, following persons cannot be deemed to be resident in India even if they have been in India for more than 182 days in the preceding financial year view details
Foreign remittance is a transfer of money from a foreign worker to their family or other individuals in their home countries. In many countries, remittance constitutes a significant portion of a nation’s economic growth as measured by gross domestic product (GDP). The United States is the leading source of foreign remittances, followed by Russia and Saudi Arabia. The top recipients of foreign remittances are India, China, Mexico, and the Philippines. The G8 and World Bank are attempting to monitor and regulate remittance costs due to the enormous flow of funds.
A remittance is a payment of money that is transferred to another party. Broadly speaking, any payment of an invoice or a bill can be called a remittance. However, the term is most often used nowadays to describe a sum of money sent by someone working abroad to his or her family back home. The term is derived from the word remit, which means to send back.more details
Foreign remittances that are transferred back to a migrant's home
country are typically used for need-based expenses, such as food and
clothing. Foreign remittances are the private savings of migrant workers
that have left their home country to find work in another country, such
as the United States. Emerging economies or developing nations rely heavily on foreign remittances from citizens working abroad.get details
Although the vast majority of the money from foreign remittances is used to help those in their home country, there are concerns about fraud. Remittance payments can be difficult to track, leading to concerns that the money could be used nefariously for terrorist financing and money laundering. Money laundering is, in part, the process of transferring money earned from illegal acts through legitimate bank accounts to hide the fact that the money was obtained illegally. Most remittances are made by foreign workers to family members in their home countries. The most common way of making a remittance is by using an electronic payment system through a bank or a money transfer service such as Western Union. People who use these options are generally charged a fee. Transfers can take as little as ten minutes to reach the recipient.view details
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