Pranab, an Indian citizen and a software engineer, was working for a multinational IT firm based in Singapore for over eight years. During his…

CA Intermediate · Corporate and Other Laws · RTP · May 2025
Pranab, an Indian citizen and a software engineer, was working for a multinational IT firm based in Singapore for over eight years. During his tenure, he accumulated substantial savings in his Singapore bank account and invested in a few properties there. With a plan to permanently return to India, he decided to sell one of his properties and transfer the proceeds to his newly opened bank account in India. Simultaneously, Pranab's employer deputed him to India for a critical software development project for three years, effective from January 2023. His salary was credited to his Indian bank account. Now, Pranab wishes to transfer the proceeds from selling his property in Singapore to his bank account in India. As per the provisions of the Foreign Exchange Management Act, 1999, which of the following statements is most accurate regarding his ability to do so?
(A) He can freely transfer the full amount without any restrictions as he is now an Indian resident.
(B) He cannot transfer the amount at all since the property was acquired outside India.
(C) He can freely transfer the funds if the property was purchased while he was a resident outside India.
(D) He needs prior RBI approval irrespective of how the property was acquired.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

He can freely transfer the funds if the property was purchased while he was a resident outside India.

Topics: The Foreign Exchange Management Act, 1999, Registration of Charges

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic