No action under FEMA against black money declarants: RBI

In a bid to encourage disclosure of undeclared assets held abroad, the RBI on Thursday said no action under FEMA will be taken against declarations under one-time compliance window ending on Wednesday.

“No proceedings shall lie under the Foreign Exchange Management Act, 1999 (FEMA) against the declarant with respect to an asset held abroad for which taxes and penalties under the provisions of Black Money Act have been paid,” RBI said. Also, no permission under FEMA will be required for those wanting to dispose of assets declared and bring back the proceeds through proper banking channel by March 31, it added. The rules framed under the new law provides for exemption from prosecution under FEMA.