CA Inter P2 · Chapter 13 · Question 8 of 10
Mr. Sen, a person resident in India, owns a house in Singapore that he inherited from his uncle, who was a person resident outside India. Under section 6(4) of FEMA, Mr. Sen:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) May hold, own, transfer or invest in the house, since it was inherited from a person resident outside India
Explanation
Section 6(4) permits a person resident in India to hold, own, transfer or invest in foreign currency, foreign security or immovable property situated outside India if it was acquired, held or owned by him when he was resident outside India, or inherited from a person who was resident outside India. Inherited property therefore needs no further permission.
More The Foreign Exchange Management Act, 1999 MCQs
- Q10Under section 8 of FEMA, where any amount of foreign exchange is due or has accrued to a person resident in India, that person shall:
- Q1The Foreign Exchange Management Act, 1999 was enacted to consolidate and amend the law relating to foreign exchange with the objective of:
- Q2Mr. Kunal stayed in India for 250 days during the preceding financial year. In May of the current financial year he left India to take up…
- Q3Ms. Laura, a foreign national, came to India purely on a long holiday and stayed for 200 days during the preceding financial year. She has…
- Q4Which of the following is a current account transaction under section 2(j) of FEMA?