Anywhere in India
Free Expert Advise
No Hidden charges
FEMA (Foreign Exchange Management Act) was introduced in the year 1999 to replace an earlier act FERA (Foreign Exchange Regulation Act). FEMA was formulated to fill all the loopholes and drawback of FERA and hence several economic reforms were introduced under the FEMA act. FEMA was basically introduced to de-regularize and have a liberal economy in India. The main objective for which FEMA was to facilitate external trade and payments. FEMA was also formulated to assist orderly development and maintenance of the Indian forex market.
Capital Account comprises all capital transactions whereas Current Account comprises trade of merchandise. Current
1. It gives powers to the Central Government to regulate the flow of payments to and from a person situated outside the country.
2. All financial transactions concerning foreign securities or exchange cannot be carried out without the approval of FEMA.
3. The Government of India can restrict an authorized individual from carrying out foreign exchange deals within the current account in public interest.
4. It also empowers RBI to place restrictions on transactions from capital Account even if it is carried out via an authorized individual.
5. As per this act, Indians residing in India, have the permission to conduct a foreign exchange, foreign security transactions or the right to hold or own immovable property in a foreign country in case security, property, or currency was acquired, or owned when the individual was based outside of the country, or when they inherit the property from individual staying outside the country.
FEMA is applicable to the whole of India and equally applicable to the agencies and offices located outside India. FEMA is applicable to:
The Current Account transactions under the FEMA Act includes –
If any person contravenes the provisions of FEMA or any rule, direction, regulation, order or notification issued under FEMA, he shall be liable to pay a penalty up to thrice the sum involved in such contravention or up to Rs.2 lakh. Where such contravention is a continuing one, he shall be liable to pay a further penalty which may extend to Rs.5,000 for every day during which the contravention continues.
We have launched a range of Chartered Accountants Services for families along with a complete income tax filing product suite covering ITR-1 to ITR-7. With the launch of our families division, we aim to help millions of Indians with financial literacy, compliance and investment.Enquiry Now