Skip to content

CS Executive · Setting Up of Business, Industrial and Labour Laws · Setting up of Business outside India and Issues Relating thereto

Ravi, a resident in India, inherited a flat in Dubai from his uncle, who was a resident outside India at the time of his death. Ravi asks whether he may hold and transfer it. What does FEMA provide?

Ravi may hold, own, transfer or invest in the Dubai flat. Section 6(4) of FEMA allows a resident in India to do so with property inherited from a person who was resident outside India. No deadline or confirmation by the Competent Authority applies.

  1. AHe must sell it within 180 days and bring the proceeds into India
  2. BHe may hold, own, transfer or invest in it, as the property was inherited from a person resident outside IndiaCorrect
  3. CHe may hold it only if the Competent Authority confirms the inheritance
  4. DHe may hold it only if its value is below the prescribed seizure threshold

Explanation

Section 6(4) permits a resident in India to hold, own, transfer or invest in foreign currency, security or immovable property abroad if it was acquired or held while resident outside India or inherited from a person resident outside India. No sale deadline or confirmation is required. The 180-day and threshold ideas belong to section 37A seizure and are unrelated here.

Did you get it right without looking?

One question tells you little. A timed set on Setting up of Business outside India and Issues Relating thereto shows your real accuracy, how long you take and where you lose marks.

Practise Setting up of Business outside India and Issues Relating theretoFree diagnostic mock

More Setting up of Business outside India and Issues Relating thereto questions