FEFI · FOREIGNEXCHA

MAINTENANCE OF CLOSE RELATIVES ABROAD, MEDICAL TREATMENT ABROAD I, STUDIES ABROAD, OTHER MISCELLANEOUS PROVISIONS, DOCUMENTATION REQUIREMENTS,

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.

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Q

What is the annual limit for remittance by a resident individual for maintenance of close relatives abroad under the Liberalised Remittance Scheme?

A

The remittance for maintenance of close relatives abroad is subsumed within the overall LRS limit of USD 2,50,000 per financial year per individual.

Q

What is the maximum amount a resident individual can remit annually for maintenance of close relatives abroad under LRS?

A

USD 2,50,000 per financial year under LRS

Q

Who qualifies as a 'close relative' for the purpose of maintenance remittances under FEMA regulations?

A

Close relatives include spouse, children (including step-children and adopted children), parents, siblings, and other family members as defined under the Companies Act, 2013 for the purpose of FEMA remittance rules.

Q

Under FEMA, which schedule governs remittances for maintenance of close relatives abroad by resident individuals?

A

Schedule III of Foreign Exchange Management (Current Account Transactions) Rules, 2000

Q

Can a resident individual remit funds to maintain a relative who is a Non-Resident Indian (NRI)?

A

Yes, a resident individual can remit funds under LRS to maintain close relatives abroad, including NRIs, within the annual ceiling of USD 2,50,000.

Q

What self-declaration is required from a resident individual remitting funds for maintenance of close relatives abroad?

A

Declaration that the remittance is for bonafide maintenance of close relative abroad

Q

What is the maximum amount a resident individual can remit for medical treatment abroad without requiring an estimate from a hospital or doctor?

A

A resident individual can remit up to USD 2,50,000 per financial year under LRS for medical treatment abroad without needing a cost estimate, though amounts beyond this require RBI approval.

Q

Can a resident individual remit money for medical treatment abroad directly to a foreign hospital without a doctor's estimate for amounts up to USD 2,50,000?

A

Yes, without requiring a hospital or doctor's estimate up to USD 2,50,000

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