New Delhi, May 25 -- If you are planning to make overseas property-related payments through international credit cards, you may want to review the applicable foreign exchange rules first. Such transactions can attract scrutiny under the Foreign Exchange Management Act, 1999 (FEMA), and in certain cases may come within the radar of the Enforcement Directorate (ED).

Where an Indian resident uses an International credit card to pay a token amount or booking deposit for overseas property, the concern is not just the payment method but the nature of the transaction. Under FEMA, buying foreign immovable property is a capital account transaction and such payments are expected to go through authorised banking channels with proper reporting under...