UNSPENT FOREIGN EXCHANGE, REMITTANCES FOR TOUR ARRANGEMENTS, IMPORT OF SERVICES - ISSUE OF GUARANTEE, CASES WHERE EXCHANGE CAN EXCEED OVERALL LRS LIMIT, ESOP FOREIGN SECURITIES, INCOME - TAX CLEARANCE, FEMA PRINCIPLE ON CURREN
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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Free sample — 8 of 66 rapid-fire Q&A cards.
How long can an individual retain unspent foreign exchange in the form of foreign currency notes after returning to India?
An individual can retain unspent foreign currency notes up to USD 2,000 or its equivalent indefinitely; amounts beyond this must be surrendered to an Authorised Dealer within 90 days of return.
What is the maximum period for which unspent foreign exchange in traveller's cheques can be retained after returning to India?
Up to 180 days from the date of return.
Within how many days must unspent foreign exchange held in a foreign currency account (EEFC or RFC) be credited after returning to India?
Unspent foreign exchange in traveller's cheques or foreign currency must be deposited into an RFC account or surrendered to an AD within 180 days of return to India.
Which FEMA regulation specifically deals with permissible current account transactions for individuals?
Foreign Exchange Management (Current Account Transactions) Rules, 2000.
Can an Indian resident retain unspent foreign exchange received as gift or honorarium for use in future travel?
Yes, a resident individual can retain up to USD 2,000 in cash or its equivalent without any time limit, whether received as gift, honorarium, or from previous travel.
Can an AD bank release foreign exchange for tour arrangements exceeding USD 250,000 under the LRS limit?
Yes, with RBI prior approval in exceptional cases.
What is the maximum amount of foreign exchange that an Authorised Dealer can release for tour arrangements abroad per calendar year?
An AD can release foreign exchange for private visits up to USD 250,000 per financial year under the Liberalised Remittance Scheme, which covers tour-related expenses as well.
What is the purpose of RFC (Resident Foreign Currency) account in the context of unspent foreign exchange?
To retain unspent foreign exchange earned or received legitimately.
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