RBI relaxes salary remittance norms for employees of foreign firms
16 Jan 2010
A foreign national resident in India and employed with a foreign company, or an Indian citizen employed by a foreign company outside India can remit the whole of his or her salary into a foreign currency account in a foreign bank outside the country provided that income-tax is paid on the entire salary as accrued in India, the Reserve Bank has said.
In a notification issued to Category-1 authorised banks, RBI said persons in either case or those on deputation to the office/ branch/ subsidiary/ joint venture in India of such foreign company, may receive the salary payable to him by credit to such account subject to the above condition.
The RBI said the notification follows liberalisation of foreign exchange remittance in November 2009
The RBI had earlier limited employee remittances overseas to 75 per cent of the salary accrued to or received by such person from the foreign company.
This is applicable to citizens of a foreign state resident in India and employed by a foreign company or Indian citizens employed by foreign companies outside India in case they are on deputation to the office /branch /subsidiary /joint venture in India of such foreign company, the release said.
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