Remittance of FPI proceeds outside India
Key steps for quick repatriation of sale proceeds
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- Remittance of FPI proceeds outside India
Before remitting proceeds outside India, FPIs are required to discharge their Indian tax liability either by paying taxes prior to the remittance of funds or on a quarterly basis via advance taxes, whichever is earlier.
This ensures that all tax liabilities are settled before any repatriation of income or capital gains proceeds from the Indian market.
Process:
- Local custodian reports transactions/ income to FPI’s tax consultant.
- Upon receipt, tax consultant issues remittance letters indicating year-to-date total income and tax liability thereon.
- Under FPI instructions, local custodian pays the taxes into Indian Government treasury and remits the proceeds/ income outside India.