The Remittances of Foreign Exchange and Investment in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991

(1) This Act may be called the Remittances of Foreign Exchange andInvestment in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991. (2) It extends to the whole of India.

In this Chapter, unless the context otherwise requires,-- (a) "recipient" means a person as defined in clause (31) of section 2 of the Income-tax Act, 1961(43 of 1961) who receives any remittance under this Chapter; (b) "remittance" means remittance made in foreign exchange by any person resident outside Indiato a person resident in India on or after the date of commencement of this Act but before the specifieddate, in the form of draft, travellers cheques, cheques drawn on banks situated outside Indiatelegraphic transfers, mail transfers, money orders or by way of transfer from Non-resident (External)Account, Foreign Currency Non-resident Account or Foreign Currency Non-resident Special DepositAccount maintained in India under the rules made under the Foreign Exchange Regulation Act, 1973(46 of 1973). Explanation.--For the purposes of this clause, "specified date" means the 1st day of December,1991 or such other later date as the Central Government may, by notification in the Official Gazette,specify in this behalf; (c) all other words and expressions used in this Chapter but not defined and defined in theForeign Exchange Regulation Act, 1973 (46 of 1973) shall have the meanings respectively assignedto them in that Act.

(1) Notwithstanding anything contained in any other law for the time being inforce,-- (a) no recipient, who claims immunity under this Chapter in accordance with such scheme as theReserve Bank of India may, by notification in the Official Gazette, specify for the purposes ofreceiving remittances under this Chapter, shall be required to disclose, for any purpose whatsoever,the nature and source of the remittance made to him; (b) no inquiry or investigation shall be commenced against the recipient under any such law onthe ground that he has received such remittance; (c) the fact that the recipient has received a remittance shall not be taken into account and shall beinadmissible as evidence in any proceedings relating to any offence or the imposition of any penaltyunder any such law. (2) Nothing in sub-section (1) shall apply-- (a) to any foreign exchange which is required to be brought into India under any of the provisionsof-- (i) the Foreign Exchange Regulation Act, 1973 (46 of 1973); or (ii) the Income-tax Act, 1961 (43 of 1961), read with the Foreign Exchange Regulation Act,1973 (46 of 1973), if the period within which such foreign exchange is to be brought into India has not expired or where suchperiod has been extended, in any manner, by the Central Government or the Reserve Bank of India or anyother authority, such extended period has not expired on the date of commencement of this Act; (b) in relation to prosecution for any offence punishable under Chapter IX or Chapter XVII of theIndian Penal Code (45 of 1860), the Narcotic Drugs and Psychotropic Substances Act, 1985(61 of 1985), the Terrorist and Disruptive Activities (Prevention) Act, 1987 (28 of 1987), thePrevention of Corruption Act, 1988 (49 of 1988)or for the purpose of enforcement of any civilliability. (3) The Central Government shall cause the scheme notified under clause (a) of sub-section (1) to belaid, as soon as may be after it is notified, before each House of Parliament.

Without prejudice to the generalityof the provisions of section 3,-- (a) any remittance received under this Chapter shall not be taken into account for the purpose ofany proceeding under the Income-tax Act, 1961 (43 of 1961) and, in particular, the recipient shall notbe entitled to claim any set-off or relief in any assessment, re-assessment, appeal, reference or otherproceeding under that Act or to re-open any assessment or re-assessment made under that Act on theground that he has received such remittance. Explanation.--For the avoidance of doubt, it is hereby declared that the provisions of theIncome-tax Act, 1961 (43 of 1961) will apply to any income which accrues or arises or is deemed toaccrue or arise to the recipient from the amount of the remittance; (b) any remittance received under this Chapter shall not form part of the assets of any assessee forthe purposes of computing his net wealth under the Wealth-tax Act, 1957 (27 of 1957) in relation toany assessment year commencing before the 1st day of April, 1992.

(1) In this Chapter, unless the context otherwise requires, (a) "Foreign Exchange Bonds" means the Bonds, issued by the State Bank of India constitutedunder the State Bank of India Act, 1955 (28 of 1955) in accordance with such scheme as the ReserveBank of India may, by notification in the Official Gazette, specify in this behalf, the investmentwherein is made on or after the date of commencement of this Act but before the specified date. Explanation.--For the purposes of this clause, "specified date" means the 1st day of December,1991 or such other later date as the Central Government may, by notification in the Official Gazette,specify in this behalf; (b) "non-resident Indian" means an individual, being a citizen of India or a person of Indianorigin who is resident outside India. Explanation 1.--A person shall be deemed to be of Indian origin if-- (i) he, or either of his parents or any of his grand- parents, was a citizen of India by virtue ofthe Constitution or the Citizenship Act, 1955 (57 of 1955); or (ii) he at any time held an Indian passport: Provided that the nationals of Pakistan or Bangladesh shall not be deemed to be of Indian origin. Explanation 2.--A spouse (not being a national of Pakistan or Bangladesh) of a person of Indianorigin shall also be deemed to be of Indian origin; (c) "overseas corporate body" means any institution, association or body, whether incorporated ornot, established under the laws of a country outside India wherein any non-resident Indian has anyinterest; (d) all other words and expressions used in this Chapter but not defined and defined in theForeign Exchange Regulation Act, 1973 (46 of 1973), shall have the meanings respectively assignedto them in that Act. (2) The Central Government shall cause the scheme notified under clause (a) of sub-section (1) to belaid, as soon as may be after it is notified, before each House of Parliament.