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Module: | Introduction, Scope and Residential Status

Q4: An individual has been living and working in Mumbai, for the last five years. While on a trip abroad, she purchases a property in Dubai, in her own name. Does FEMA apply to this asset?

A
No, FEMA laws stop at the Indian border.
B
No, because the asset is immovable property, located in a foreign country.
C
Yes, because FEMA applies to all persons resident in India, including their assets held outside India.
D
Yes, but only if she transfers the property, to a non-resident.
✅ Correct Answer: C
FEMA has extraterritorial jurisdiction regarding residents.
It applies to the whole of India and also applies to all branches, offices, and agencies outside India owned or controlled by a person resident in India.
Crucially, if a person is a "person resident in India," they are subject to FEMA regulations regarding their global assets, including foreign bank accounts and property.
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