Section 2 of The Remittances of Foreign Exchange and Investment in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991
Definitions.
In this Chapter, unless the context otherwise requires,--
- (a)"recipient" means a person as defined in clause (31) of section 2 of the Income-tax Act, 1961 (43 of 1961) who receives any remittance under this Chapter;
- (b)"remittance" means remittance made in foreign exchange by any person resident outside India to a person resident in India on or after the date of commencement of this Act but before the specified date, in the form of draft, travellers cheques, cheques drawn on banks situated outside India telegraphic transfers, mail transfers, money orders or by way of transfer from Non-resident (External) Account, Foreign Currency Non-resident Account or Foreign Currency Non-resident Special Deposit Account maintained in India under the rules made under the Foreign Exchange Regulation Act, 1973 (46 of 1973). Explanation.--For the purposes of this clause, "specified date" means the 1st day of December, 1991 or such other later date as the Central Government may, by notification in the Official Gazette, specify in this behalf;
- (c)all other words and expressions used in this Chapter but not defined and defined in the Foreign Exchange Regulation Act, 1973 (46 of 1973) shall have the meanings respectively assigned to them in that Act.
Summary
- A recipient is defined by referencing clause (31) of section 2 of the Income-tax Act, 1961, who receives a remittance.
- A remittance must be made in foreign exchange by someone residing outside India to someone residing in India.
- The remittance must occur on or after the start date of the Act but before the specified date, which is December 1, 1991, unless the Central Government sets a later date.
- Acceptable transfer methods include drafts, traveler's cheques, foreign bank cheques, telegraphic transfers, mail transfers, money orders, or transfers from designated non-resident accounts.
- Undefined terms in this Chapter get their meanings from the Foreign Exchange Regulation Act, 1973.
Practical examples
FAQ
1. Who qualifies as a recipient under Section 2?
A recipient is a person defined in clause (31) of section 2 of the Income-tax Act, 1961, who receives a remittance under this Chapter.
2. What is the default specified date before which the remittance must be made?
The default specified date is the 1st day of December, 1991.
3. Can the specified date of December 1, 1991, be extended?
Yes, the Central Government can specify a later date by publishing a notification in the Official Gazette.
4. What bank accounts can be used to make a remittance by way of transfer?
You can transfer from a Non-resident (External) Account, Foreign Currency Non-resident Account, or Foreign Currency Non-resident Special Deposit Account maintained in India.
5. How are terms that are not defined in this Chapter understood?
Any undefined words that are defined in the Foreign Exchange Regulation Act, 1973, will carry the meanings given to them in that Act.
Test yourself
1.Which Act is referred to for the definition of a recipient?
2.What is the default specified date mentioned in the definition of remittance?
3.Which of the following is NOT explicitly listed as a valid form of remittance?
4.Under which Act must the Non-resident (External) Account rules be made to qualify under Section 2?
5.Who can change the specified date to a later date?