A gentleman, now deceased since 18 years, was a Singapore PR and had worked honestly to earn money for his family.
He is survived by his wife, an Indian Citizen and also filing IT returns honestly and correctly without any notices ever from the department since the past 41 years ( since 1984 ).
The husband shifted to India in 1984, but continued to be a Singapore citizen, visiting Singapore on occasions.
He has left around Rs. 5 Lacs in a bank account jointly held by him and his wife.
The wife now wants to bring the remaining cash to her Indian Bank account through proper banking channels. ( the savings account is mentioned in her IT file and is using the account since 1984 )
Advice required is
- If she does the remittance, can the RBI or the bank create any issues in crediting the account with the cash remitted.
- Will FEMA or any other Indian acts could punish / hold the wife liable for any violations.
UCO bank has sent a Form No. 2 saying that the amount will be held with the UCO Forex department and they will subsequently release it after the lady signs and submits it to the bank.
The lady and her elder sister and married to 2 bothers (both Singapore PR’s). Earlier the elder brother remitted the money to the lady’s bank account giving a gift deed. But now he too is deceased. So there is no other option but to remit the amount back to her Indian Bank account.
I understand the situation. Let me give you a structured explanation from the perspective of Indian Income Tax Act, FEMA (Foreign Exchange Management Act, 1999), and RBI regulations:
- Whether RBI / Bank can create issues in crediting remittance
Since the wife is a joint holder of the Singapore account, she is a survivor and thus the balance automatically vests in her.
Under RBI rules, remittances from overseas bank accounts in own name (or joint accounts where one is survivor) are treated as inward remittance of own funds, not foreign remittance from third parties.
Banks usually ask for a declaration (like the Form No. 2 UCO has asked) to confirm compliance with FEMA and that this is not a third-party transfer. Once the form is signed, the bank will release the funds.
👉 So, no issue from RBI so long as documentation is proper.
- FEMA implications
FEMA allows resident individuals (the wife is resident Indian since 1984) to hold foreign bank accounts if they were acquired when she was resident abroad, or as a joint holder with her husband who was a Singapore PR. This comes under FEMA, Section 6(4):
“A person resident in India may hold, own, transfer or invest in foreign currency, foreign security or immovable property situated outside India if such currency, security or property was acquired when such person was resident outside India…”
Since the Singapore account was jointly held since 1984 and disclosed in her IT return, she is not in violation.
Remittance of her own balance from Singapore to India is not a contravention of FEMA.
- Income Tax Act implications
The money in the Singapore account represents past accumulated savings of her husband (deceased), which, by survivorship, legally belongs to her.
This is treated as capital receipt / inheritance. Under Section 56(2)(x) of the Income-tax Act, inheritance is specifically not taxable.
Hence, when the money is transferred to India, it is not taxable again.
She only needs to ensure:
She continues to disclose the foreign account (till it is closed) under Schedule FA of her ITR, if applicable.
If the account is now closed after remittance, she should update the ITR next year accordingly.
- Practical steps she should take
Submit Form No. 2 to UCO Bank’s forex department. This is standard under RBI rules for remittances > USD 10,000.
Keep supporting documents ready:
Husband’s death certificate
Proof of joint account in Singapore
Her PAN, Aadhaar, and Indian bank account details
Declaration that the remittance is her own money as surviving account holder
Once funds are credited, she can use them freely.
- Why her earlier gift route was different
Earlier, the elder brother had remitted money as gift, so it required a gift deed under Section 56 of IT Act (gifts from specified relatives are exempt).
In this case, no gift is involved—it’s her own survivorship right, so even simpler.
✅ Conclusion
RBI/Bank will not stop remittance if proper Form No. 2 and survivor documents are submitted.
FEMA Section 6(4) protects her—no violation.
Income Tax Act, Section 56(2)(x) excludes inheritance → not taxable.
She should only keep proper documentation and disclose in ITR as needed.
