Ms. Pearl was an Indian citizen who got a job in a software company in USA. She went to USA and stayed there for 15 years. During her stay, she…
CA Intermediate · Corporate and Other Laws · RTP · September 2025
Ms. Pearl was an Indian citizen who got a job in a software company in USA. She went to USA and stayed there for 15 years. During her stay, she purchased a house in USA for her residence. Then due to some personal issues she moved back to India and joined a software company in India. As she had moved back to India, she let out her house in USA and deposited the obtained rent in her account in USA. Advise whether Ms. Pearl can purchase another house in USA from her account in USA? Give you answer referring to the provisions of the Foreign Exchange Management Act, 1999.
Suggested Answer and Working Notes:
According to section 6 (4) of the Foreign Exchange Management Act, 1999, (the Act) a person resident in India may hold, own, transfer or invest in foreign currency, foreign security or any immovable property situated outside India if such currency, security or property was acquired, held or owned by such person when he was resident outside India or inherited from a person who was resident outside India. As per the fact, Ms. Pearl during her stayed in USA purchased a house in USA. As per the above provision and facts of the case, Ms. Pearl can purchase the new house in USA from her USA account.
Topics: The Foreign Exchange Management Act, 1999
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