As defined in Section 2(e) of the FEMA, "capital account transaction" means transactions which alters the assets or liabilities, including contingent liabilities outside India, of persons resident in India or assets or liabilities, in India, of persons resident outside India and includes transactions referred to in section 6(3) of the FEMA. Transactions covered in section 6(3) of FEMA are as follows: -
Transfer or issue of any foreign security by a person resident in India.
Transfer or issue of any security by a person resident outside India.
Transfer or issue of any security or foreign security by any branch, office or agency in India of a person resident outside India.
Any borrowing or lending in foreign exchange in whatever form by whatever name called.
Any borrowing or lending in rupees in whatever form or whatever name called between a person resident in India and a person resident outside India.
Deposits between persons resident in India and persons resident outside India.
Export, import or holding of currency or currency notes.
Transfer of immovable property outside India, other than a lease not exceeding five years by a person resident in India.
Acquisition or transfer of immovable property in India, other than lease not exceeding five years by a person resident outside India.
Giving of a guarantee or surety in respect of any debt, obligation or other liability incurred –
by a person resident in India and owed to a person resident outside India or
by a person resident outside India.
Note : Section 6(3) has been omitted by Finance Act, 2015 w.e.f. a date yet to be notified.
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