Dr. Gupta, an Indian national, residing in Thailand and wanted to avail foreign exchange facility upto USD 2,00,000 only. Whether he can do so ? Explain the relevant provisions of the Foreign Exchange Management Act, 199
CS Executive · Economic, Business and Commercial Laws · PYQS · December 2019
Dr. Gupta, an Indian national, residing in Thailand and wanted to avail foreign exchange facility upto USD 2,00,000 only. Whether he can do so ? Explain the relevant provisions of the Foreign Exchange Management Act, 1999 in this respect.
Answer & Explanation:
Remittances of USD 2,50,000 per Financial Year (FY) for permitted Current Account Transactions such as private visit; gift/donation; going abroad on employment; emigration; maintenance of close relatives abroad; business trip; medical treatment abroad; studies abroad are available to resident individuals under Schedule III to Foreign Exchange Management (Current Account Transactions) Amendment Rules, 2015 read with Foreign Exchange Management Act, 1999 are subsumed under the Liberalised Remittance Scheme (LRS). Release of foreign exchange exceeding USD 2,50,000, requires prior permission from the Reserve Bank of India. In view of the above, Dr. Gupta can freely avail foreign exchange facilities upto USD 2,00,000.
Topics: Foreign Exchange Management Act, 1999
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