RBI NOTIFIES RELAXATION IN REMITTANCE NORMS

The Reserve Bank of India has notified relaxation in remittance norms regarding salary earned by foreign nationals employed in India by a foreign company or an Indian citizen employed by a foreign company outside India. These individuals, according to the RBI, may open, hold and maintain a foreign currency account with a bank outside India and receive the whole salary payable to him for the services rendered to the office / branch / subsidiary / joint venture in India of such foreign company, by credit to such account, provided that income tax chargeable under the Income Tax Act, 1961, is paid on the entire salary as accrued in India.