What are the provisions related to FEMA Act 1999 for NRIs giving Power of Attorneys in India?
As per the FEMA Notification under the Reserve Bank of India, with respect to Power of Attorney for an NRI in India, it is stated that:
- Authorized dealers / banks may allow operations on an NRO account in terms of a Power of Attorney, provided such operations are restricted to:(i) all local payments in rupees including payments for eligible investments subject to compliance with relevant regulations made by the Reserve Bank; and (ii) remittance outside India of current income in India of the non-resident individual account holder, net of applicable taxes.
- The resident Power of Attorney holder shall not repatriate outside India funds held in the account under any circumstances other than to the non-resident individual account holder himself nor shall make payment by way of gift to a resident on behalf of the non-resident account holder or transfer funds from the account to another NRO account.
- Any remittance outside India shall be within the ceiling as may be prescribed by the Bank from time to time and subject to tax compliance.