{"id":2091,"date":"2026-08-27T18:24:47","date_gmt":"2026-08-27T12:54:47","guid":{"rendered":"https:\/\/blog.remitcircle.com\/?p=2091"},"modified":"2026-09-04T19:29:50","modified_gmt":"2026-09-04T13:59:50","slug":"p0002-return-of-indian-investment-abroad-in-debt-securities-2","status":"publish","type":"post","link":"https:\/\/blog.remitcircle.com\/purpose-codes\/p0002-return-of-indian-investment-abroad-in-debt-securities-2\/","title":{"rendered":"P0002: Return of Indian investment abroad in debt securities"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"2091\" class=\"elementor elementor-2091\">\n\t\t\t\t<div class=\"elementor-element elementor-element-163ed87c e-flex e-con-boxed e-con e-parent\" data-id=\"163ed87c\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7126b794 elementor-widget elementor-widget-text-editor\" data-id=\"7126b794\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t\t\t\t\t\t<h2><b>What is Purpose Code P0002?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">P0002 applies when an Indian investor, company, or institution receives money in India from the sale, redemption, or early exit of foreign debt securities \u2014 such as overseas bonds, debentures, notes, or fixed-income instruments. It tells the Indian banking and regulatory system: this is debt capital returning home, not income or dividends.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It sits within the Capital Account group (Group 00) and is the debt counterpart to P0001, which handles returning equity capital. If you or your business originally lent money to a foreign entity by purchasing their debt instruments, P0002 is the code for when those funds come back.<\/span><\/p>\n<p><a href=\"\/category\/purpose-codes\/\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"page\" data-id=\"351\">See all RBI purpose codes<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><!-- \/wp:post-content --><\/p>\n<p><!-- wp:heading {\"className\":\"u005cu005cu005cu0022wp-block-headingu005cu005cu005cu0022\"} --><\/p>\n<h2><b>When to Use P0002<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Use P0002 when you are repatriating capital that was originally deployed outside India in the form of debt \u2014 not equity. Common scenarios:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">An Indian company or NBFC that purchased foreign corporate bonds and is now receiving redemption proceeds<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An institutional investor exiting overseas government securities, sovereign bonds, or fixed-income ETFs<\/span><\/li>\n<li><span style=\"font-weight: 400;\">An individual who subscribed to an overseas debenture or structured debt product and is now receiving maturity proceeds<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A corporate treasury bringing back proceeds from unwinding a foreign fixed-income position<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A fund manager repatriating capital from overseas debt funds on behalf of Indian investors<\/span><\/li>\n<\/ul>\n<p><!-- \/wp:list-item --><\/p>\n<p><!-- \/wp:list --><\/p>\n<p><!-- wp:quote --><\/p>\n<blockquote>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Quick check: <\/strong><span style=\"font-weight: 400;\">If the inward money is from the principal repayment or sale of overseas debt instruments (bonds, debentures, notes), it&#8217;s P0002. If it&#8217;s the interest or coupon income from those same instruments, use the applicable income code instead.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&nbsp;<\/span><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<\/blockquote>\n<p><!-- \/wp:quote --><\/p>\n<p><!-- wp:heading --><\/p>\n<h2><strong><strong><strong>Wrong Code? Use These Instead<\/strong><\/strong><\/strong><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:table --><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>If your money is from\u2026<\/b><\/p>\n<\/td>\n<td>\n<p><b>Correct code to use<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Returning capital from foreign equity \/ shares<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0001<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Returning capital from a foreign branch<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0003<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Returning capital from a foreign subsidiary \/ associate<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0004<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Returning capital from overseas real estate<\/span><\/p>\n<\/td>\n<td>\n<p><b>P0005<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400;\">Coupon \/ interest income from overseas bonds<\/span><\/p>\n<\/td>\n<td>\n<p><b>Applicable income code \u2014 consult your CA<\/b><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><br><\/p>\n<p><!-- \/wp:table --><\/p>\n<p><!-- wp:heading {\"className\":\"u005cu005cu005cu0022wp-block-headingu005cu005cu005cu0022\"} --><\/p>\n<h2><strong><strong>Documents to Keep Ready<\/strong><\/strong><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:table --><\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Document<\/b><\/p>\n<\/td>\n<td>\n<p><b>Why you need it<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bond redemption \/ sale confirmation<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Confirms the underlying debt instrument transaction that triggered the inflow<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Maturity \/ settlement statement<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Shows the principal amount being repatriated and the redemption date<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Original investment proof<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Demonstrates the funds originated as outward capital (e.g., prior SWIFT, ODI filing)<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Bank credit advice \/ SWIFT confirmation<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Confirms the funds have arrived in your Indian bank account<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>e-FIRA<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Official RBI-recognised proof of inward foreign remittance<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>KYC documents<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400;\">Standard bank requirement \u2014 PAN, Aadhaar, or business registration<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><br><\/p>\n<p><!-- \/wp:table --><\/p>\n<p><!-- wp:heading {\"className\":\"u005cu005cu005cu0022wp-block-headingu005cu005cu005cu0022\"} --><\/p>\n<h2><strong>What is an e-FIRA \u2014 and Why Does It Matter?<\/strong><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>An e-FIRA (Electronic Foreign Inward Remittance Advice) is the official proof that foreign money entered India. It confirms the nature and purpose of the inflow, which matters for tax treatment, FEMA compliance, and audit trails.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Your bank generates it automatically once the funds land. You can usually download it from your internet banking portal or request it at your Forex desk. The e-FIRA will reflect the correct purpose code, which your CA or accounts team will reference during filings.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:quote --><\/p>\n<blockquote>\n<p><!-- wp:paragraph --><\/p>\n<p>&nbsp;<strong>Did you know? <\/strong> Some banks take days to issue an e-FIRA. With Remit Circle, you can download yours instantly \u2014 at no charge \u2014 the moment your payment is credited. \u2192 Get your free e-FIRA via Remit Circle<\/p><p><br><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<\/blockquote>\n<p><!-- \/wp:quote --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:heading --><\/p>\n<h2><strong>Receive Inward Remittances Compliantly with Remit Circle<\/strong><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Getting the purpose code right on an inward remittance isn&#8217;t just a formality \u2014 a mismatch can cause payment holds, RBI queries, or incorrect tax treatment. Remit Circle is built to handle this for you.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Instant e-FIRA \u2014 <\/strong>Download your Foreign Inward Remittance Advice the moment funds are credited. No waiting on the bank, no Forex desk visits. Free.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Correct purpose code, every time \u2014 <\/strong>Remit Circle flags the right code for your transaction type before the payment is processed, so there are no mismatch holds at the bank.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Multi-currency support \u2014 <\/strong>Receive in USD, EUR, GBP, AUD and more. Funds settle directly into your Indian bank account at competitive rates.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Compliance-ready records \u2014 <\/strong>Every transaction comes with a clean audit trail \u2014 purpose code, amount, date, counterparty \u2014 so you and your CA are always on the same page.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:pullquote --><\/p>\n<figure>\n<blockquote>\n<p><strong>Start receiving international payments with Remit Circle<\/strong><\/p>\n<p><cite>Open a free account in minutes. No minimum balance, no hidden fees. Get your e-FIRA instantly on every inward remittance.<br><strong>&nbsp;<a href=\"https:\/\/remitcircle.com\/authentication\/login\" target=\"_blank\" rel=\"noreferrer noopener\" data-type=\"link\" data-id=\"https:\/\/remitcircle.com\/authentication\/login\">Open your free Remit Circle account \u2192<\/a><\/strong><\/cite><\/p>\n<\/blockquote>\n<\/figure>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-f1d9ec4 e-con e-atomic-element e-flexbox-base e-6f9e677 \" data-id=\"f1d9ec4\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"f1d9ec4\">\n    <div class=\"elementor-element elementor-element-5434b84 e-con e-atomic-element e-flexbox-base e-5434b84-6fae5c0 \" data-id=\"5434b84\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"5434b84\">\n    <div class=\"elementor-element elementor-element-25e1fcb e-con e-atomic-element e-flexbox-base e-25e1fcb-784ebc1 \" data-id=\"25e1fcb\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"25e1fcb\">\n    <div class=\"elementor-element elementor-element-ba338c6 e-con e-atomic-element e-flexbox-base e-ba338c6-4dd7357 \" data-id=\"ba338c6\" data-element_type=\"e-flexbox\" data-e-type=\"e-flexbox\" data-interaction-id=\"ba338c6\">\n    \t\t\t<h2 data-interaction-id=\"b42b068\" class=\"e-b42b068-7113bf3 e-heading-base\"><strong id=\"e-mser367n-mouqw3g\">Frequently Asked Questions<\/strong><br><\/h2>\n\t\t\t\t<div class=\"elementor-element elementor-element-252dc21 elementor-widget elementor-widget-n-accordion\" data-id=\"252dc21\" data-element_type=\"widget\" data-e-type=\"widget\" data-settings=\"{&quot;n_accordion_animation_duration&quot;:{&quot;unit&quot;:&quot;ms&quot;,&quot;size&quot;:200,&quot;sizes&quot;:[]},&quot;default_state&quot;:&quot;expanded&quot;,&quot;max_items_expended&quot;:&quot;one&quot;}\" data-widget_type=\"nested-accordion.default\">\n\t\t\t\t\t\t\t<div class=\"e-n-accordion\" aria-label=\"Accordion. Open links with Enter or Space, close with Escape, and navigate with Arrow Keys\">\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3890\" class=\"e-n-accordion-item\" open>\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"1\" tabindex=\"0\" aria-expanded=\"true\" aria-controls=\"e-n-accordion-item-3890\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: What is RBI purpose code P0002? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3890\" class=\"elementor-element elementor-element-b3a5fd6 e-con-full e-flex e-con e-child\" data-id=\"b3a5fd6\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"abb5fbf\">P0002 is used when an Indian resident, company, or institution receives money in India from the sale, redemption, or maturity of foreign debt securities such as bonds, debentures, or notes. It signals to the banking system that this is a return of debt capital, not business income or interest.<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3891\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"2\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-3891\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Is P0002 different from P0001? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3891\" class=\"elementor-element elementor-element-3248075 e-con-full e-flex e-con e-child\" data-id=\"3248075\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"8cf009e\">Yes. P0001 is for returning capital originally invested in foreign equity (shares), while P0002 is specifically for returning capital invested in debt instruments (bonds, debentures, notes). Using the wrong code can create compliance issues and delays at your bank.<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3892\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"3\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-3892\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: What if I'm receiving both principal and accrued interest together in one remittance? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3892\" class=\"elementor-element elementor-element-d3f614a e-con-full e-flex e-con e-child\" data-id=\"d3f614a\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"76ba726\">If the remittance bundles principal repayment and interest income, your bank may need to split it across two purpose codes \u2014 P0002 for the principal and the applicable income code for the interest component. Discuss this with your bank's Forex desk or CA before processing.<br><\/p>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3893\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"4\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-3893\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Do I need RBI approval to repatriate overseas debt security proceeds? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3893\" class=\"elementor-element elementor-element-ee016e1 e-flex e-con-boxed e-con e-child\" data-id=\"ee016e1\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"be68cb3\">In most cases, proceeds from permitted overseas debt investments can be repatriated freely. However, if the original investment required RBI approval under the ODI framework, ensure you have the relevant documentation and report the exit to your AD bank. Consult a FEMA specialist for your specific case.<br><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3894\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"5\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-3894\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Is the returned principal under P0002 taxable in India? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3894\" class=\"elementor-element elementor-element-4374323 e-flex e-con-boxed e-con e-child\" data-id=\"4374323\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"65a4f24\">The principal return itself is generally not treated as income, but capital gains may apply depending on the type of debt instrument, holding period, and applicable tax treaties. Debt fund taxation rules in India have changed in recent years \u2014 consult your CA for current rates applicable to your situation.<br><\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t\t<details id=\"e-n-accordion-item-3895\" class=\"e-n-accordion-item\" >\n\t\t\t\t<summary class=\"e-n-accordion-item-title\" data-accordion-index=\"6\" tabindex=\"-1\" aria-expanded=\"false\" aria-controls=\"e-n-accordion-item-3895\" >\n\t\t\t\t\t<span class='e-n-accordion-item-title-header'><div class=\"e-n-accordion-item-title-text\"> Q: Can an Indian NBFC or mutual fund use P0002 for overseas debt fund exits? <\/div><\/span>\n\t\t\t\t\t\t\t<span class='e-n-accordion-item-title-icon'>\n\t\t\t<span class='e-opened' ><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t\t<span class='e-closed'><svg aria-hidden=\"true\" class=\"e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t<div role=\"region\" aria-labelledby=\"e-n-accordion-item-3895\" class=\"elementor-element elementor-element-4e49f71 e-flex e-con-boxed e-con e-child\" data-id=\"4e49f71\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t\t<p class=\"e-paragraph-base\" data-interaction-id=\"496cdfb\">Yes, provided the original investment was permitted under FEMA and RBI regulations governing overseas investments by NBFCs or mutual funds. The purpose code P0002 is appropriate regardless of the investor type \u2014 individual, corporate, or institutional \u2014 as long as the inflow represents return of overseas debt capital.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\n<\/div>\n\n<\/div>\n\n<\/div>\n\n<\/div>\n\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"You are bringing back money to India from selling, redeeming, or exiting overseas bonds, debentures, or other debt instruments\nIndian investors, corporates, or institutions that held foreign debt securities and are now repatriating the proceeds\nInward remittance (money coming into India)","protected":false},"author":260895650,"featured_media":2023,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_wpcom_ai_launchpad_first_post":false,"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","csco_page_load_nextpost":"","csco_page_reading_time":"","csco_page_toc_navigation":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"csco_post_video_bg_volume":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1384],"tags":[],"class_list":["post-2091","post","type-post","status-publish","format-standard","has-post-thumbnail","category-purpose-codes","cs-entry","cs-video-wrap"],"jetpack_publicize_connections":[],"jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/phhXOC-xJ","jetpack-related-posts":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/blog.remitcircle.com\/wp-content\/uploads\/2026\/08\/Purpose_Code_32-Repatriation_of-P0002.png?fit=1200%2C800&ssl=1","_links":{"self":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/users\/260895650"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/comments?post=2091"}],"version-history":[{"count":15,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2091\/revisions"}],"predecessor-version":[{"id":2234,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/posts\/2091\/revisions\/2234"}],"wp:attachment":[{"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/media?parent=2091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/categories?post=2091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.remitcircle.com\/wp-json\/wp\/v2\/tags?post=2091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}