{"id":3601,"date":"2016-10-10T01:20:00","date_gmt":"2016-10-09T19:50:00","guid":{"rendered":"https:\/\/taxclick.org\/?p=3601"},"modified":"2016-10-10T01:31:10","modified_gmt":"2016-10-09T20:01:10","slug":"thinking-investing-outside-indiait-easier-think","status":"publish","type":"post","link":"https:\/\/taxclick.org\/type\/fema\/thinking-investing-outside-indiait-easier-think\/","title":{"rendered":"Thinking of Investing outside India? It is easier than you think"},"content":{"rendered":"

Life is simple and easy who know and live it fully this way. Similarly, investment OUTSIDE INDIA is simple, easy and hassle free for those who know how to do it the RIGHT WAY.<\/p>\n

Investors are always seeking new avenues for making their money work harder for them and continually explore opportunities within as well as outside India. Many investors are seen to exercise limited options either because of their lack of awareness or they are not updated about the pitara<\/em> of avenues available to them. This Article is about making you aware of how you can invest outside India. INVESTING ABROAD IS EASY.<\/strong> It is explained in detail in the following paragraphs and beginning with a brief on the foreign exchange.<\/p>\n

The Foreign Exchange transactions in India are regulated by Reserve Bank of India (RBI) and governed by the Foreign Exchange Management Act, 1999. Over the passage of time and opening up of India economy, the RBI has gradually shifted its focus from regulating the Foreign Exchange to the Management of Foreign Exchange. The RBI in calibrated manner has been making it more and more easy and convenient to undertake International Transactions.<\/p>\n

As a measure towards fuller account convertibility, RBI had announced a Liberalised Remittance Scheme (\u201cLRS\u201d\/ \u201cthe Scheme\u201d) in February 2004 as a step towards further simplification and liberalisation of the foreign exchange facilities available to resident individuals. Under the Scheme every resident is allowed to make remittance of USD 250,000 every year. The remittance can be made for all the permissible Current Account Transactions and Capital Account Transactions.<\/p>\n

It can be said that Residents are free to invest abroad up to the limit specified by RBI. Right now this limit is USD 250,000.<\/p>\n

The following table shows how RBI has raised the investment limits over the past decade<\/p>\n\n\n\n\n
Date<\/strong><\/td>\nFeb 04, 2004<\/strong><\/td>\nDec 20, 2006<\/strong><\/td>\nMay 08, 2007<\/strong><\/td>\nSep 26, 2007<\/strong><\/td>\nAug 14, 2013<\/strong><\/td>\nJun 03, 2014<\/strong><\/td>\nMay 26, 2015<\/strong><\/td>\n<\/tr>\n
LRS limit (in USD)<\/td>\n25,000<\/td>\n50,000<\/td>\n1,00,000<\/td>\n2,00,000<\/td>\n75,000<\/td>\n1,25,000<\/td>\n2,50,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The Process of making investment outside India is quite simple.<\/p>\n

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  1. Go to your bank and furnish an application cum declaration in the prescribed form A2. (Request the Bank to give you form A2).<\/li>\n
  2. Fill in the details and provide all supporting documents (including your PAN)<\/li>\n
  3. Submit your application<\/li>\n<\/ol>\n

    Who can apply?<\/strong><\/h3>\n