1. PROVISIONS FERA consisted of 81 sections, and was more complex FEMA is much simple, and consist of only 49 sections.
2. FEATURES Presumption of negative intention (Mens Rea ) and joining hands in offence (abatement) existed in FEMA
These presumptions of Mens Rea and abatement have been excluded in FEMA
3. NEW TERMS IN FEMA Terms like Capital Account Transaction, current Account Transaction, person, service etc. were not defined in FERA. Terms like Capital Account Transaction, current account Transaction person, service etc., have been defined in detail in FEMA
4. DEFINITION OF AUTHORISED PERSON Definition of "Authorised Person" in FERA was a narrow one ( 2(b) The definition of Authorised person has been widened to include banks, money changes, off shore banking Units etc. (2 ( c )
5. MEANING OF "RESIDENT" AS COMPARED WITH INCOME TAX ACT. There was a big difference in the definition of "Resident", under FERA, and Income Tax Act
The provision of FEMA, are in consistent with income Tax Act, in respect to the definition of term " Resident". Now the criteria of "In India for 182 days" to make a person resident has been brought under FEMA. Therefore a person who qualifies to be a non-resident under the income Tax Act, 1961 will also be considered a non-resident for the purposes of application of FEMA, but a person who is considered to be non-resident under FEMA may not necessarily be a non-resident under the Income Tax Act, for instance a business man going abroad and staying therefor a period of 182 days or more in a financial year will become a non-resident under FEMA.
6. PUNISHMENT Any offence under FERA, was a criminal offence , punishable with imprisonment as per code of criminal procedure, 1973 Here, the offence is considered to be a civil offence only punishable with some amount of money as a penalty. Imprisonment is prescribed only when one fails to pay the penalty.
7. QUANTUM OF PENALTY. The monetary penalty payable under FERA, was nearl
Answered by SK.BANTHIA
at
11:41 PM on September 15, 2007
