Money Laundering FERA or FEMA
Soma
(Querist) 10 February 2011
This query is : Resolved
I teach foreign students online, using SKYPE or Google Talk etc. Recently I received a small payment of 3000 INR in my SBI Savings account. The money is transferred to my account directly by the student from his bank account (or if he deposits it directly in my SBI account at a SBI branch in his country) .
Whether for receiving such payment I have to take permission from any authority/RBI? or do I need to inform about it to any body? Whether receiving such money amounts to offense under any Act in India?
My total yearly income does not exceed 1,50,000/-
Please Guide..
M V Gupta
(Expert) 11 February 2011
The amount is recived by you through banking channels and does not require any permission of the RBI. However u will have to include the amount in ur IT returns and pay tax on it.
Soma
(Querist) 11 February 2011
Thanks a lot
malipeddi jaggarao
(Expert) 13 February 2011
There are no restrictions for inward remittances into India as per FEMA Act if the remittances is through proper channels(Authorised Dealers including Banks).
The following are the provisions in the Act.
a. Persons resident in India are also permitted to receive directly from persons resident outside India foreign exchange in the form of bank drafts or traveller’s cheques issued outside India or cheques drawn on banks situated outside India provided the instruments so received are surrendered to an authorised dealer in foreign exchange in India within a period of seven days from date of receipt.
b. Persons resident in India are also permitted to receive from any person resident outside India and who is on a visit to India payment in foreign currencies for services rendered or in settlement of any lawful obligations - subject to the condition that the foreign currencies so received will be surrendered to an authorised dealer in foreign exchange within seven days of receipt.
In your case it is through banking channels. There is no problem as such.
All the best for you.
