What are current account transactions?
Current account transactions are those that are related to the day-to-day living expenses of a resident individual. They include expenses such as:
- Private visits
- Gifts and donations
- Employment abroad
- Maintenance of close relatives abroad
- Business trips
- Medical treatment abroad
- Studies abroad
What is the limit on remittances under the LRS for current account transactions?
The limit on remittances under the LRS for current account transactions is USD 2,50,000 per financial year (April-March). This means that you can remit up to USD 2,50,000 in a financial year for any permissible current account transaction.
What are the permissible current account transactions under the LRS?
The following are some of the permissible current account transactions under the LRS:
- Private visit
- Gift/donation
- Going abroad on employment
- Emigration
- Maintenance of close relatives abroad
- Business trip
- Medical treatment abroad
- Studies abroad
What are the documents required to remit money under the LRS for current account transactions?
To remit money under the LRS for current account transactions, you will need to submit the following documents to the Authorised Dealer (AD) bank:
- A valid passport
- A copy of your PAN card
- A letter stating the purpose of the remittance
- A bank draft or demand draft for the amount of remittance
What are the penalties for violating the LRS for current account transactions?
Any person who violates the LRS for current account transactions may be subject to the following penalties:
- A fine of up to INR 20,000
- Imprisonment for up to three years
- Or, both
MCQs on remittances under the Liberalized Remittance Scheme for Current Account Transactions
Q: What is the maximum amount of money that I can remit under the LRS for current account transactions?
A: The maximum amount of money that you can remit under the LRS for current account transactions is USD 2,50,000 per financial year (April-March).
Q: What are the permissible current account transactions under the LRS?
A: The following are some of the permissible current account transactions under the LRS:
- Private visit
- Gift/donation
- Going abroad on employment
- Emigration
- Maintenance of close relatives abroad
- Business trip
- Medical treatment abroad
- Studies abroad
Q: What are the documents required to remit money under the LRS for current account transactions?
A: To remit money under the LRS for current account transactions, you will need to submit the following documents to the Authorised Dealer (AD) bank:
- A valid passport
- A copy of your PAN card
- A letter stating the purpose of the remittance
- A bank draft or demand draft for the amount of remittance
Q: What are the penalties for violating the LRS for current account transactions?
A: Any person who violates the LRS for current account transactions may be subject to the following penalties:
- A fine of up to INR 20,000
- Imprisonment for up to three years
- Or, both