Section 7 in Foreign Exchange Management (Debt Instruments) Regulations, 2019
7. Taxes and Remittance of sale proceeds.
- 7.1. TaxesAll transaction under these regulations shall be undertaken through banking channels in India and subject to payment of applicable taxes and other duties/ levies in India.7.2Remittance of sale proceeds. - (1) No remittance of sale proceeds of a debt instrument held by a person resident outside India shall be made otherwise than in accordance with these Regulations and the conditions specified in the relevant Schedule.(2)An authorised dealer may allow the remittance of sale proceeds of a debt instrument (net of applicable taxes) to the seller of such instrument resident outside India -Provided -(i)the instrument was held by the seller on repatriation basis; and(ii)Reserve Bank's approval has been obtained in other cases for sale of the instrument and remittance of the sale proceeds thereof;(3)An authorised dealer may allow remittances - both inward and outward - related for permitted derivatives transactions.
