Miscellaneous Provisions Relating to Remittances
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the maximum guarantee amount an AD Category-I bank may issue in favour of a non-resident service provider on behalf of a resident service importer?
The maximum guarantee permitted for import of services is USD 500,000 or equivalent.
Under FEMA, how is an IFSC financial institution treated for the purpose of resident-non-resident transactions?
As a person resident outside India, making dealings a resident-non-resident transaction.
When an Authorised Dealer processes a remittance under FEMA, who decides whether the remittance is taxable?
RBI does not decide taxability; the AD must independently ensure both FEMA permissibility and compliance with tax laws, as these are separate checks.
Can an NRI close relative be included as a joint holder in a resident account on an 'Either or Survivor' basis?
Yes, an NRI close relative may be included as Either-or-Survivor joint holder.
Are FEMA permission and tax compliance treated as a single combined check for outward remittances?
No, they are separate checks — the AD must satisfy FEMA permissibility as well as applicable tax-law compliance independently.
When an NRI close relative is a joint holder in a resident account, can the NRI's own foreign funds be credited to that account?
No, crediting the NRI's own money to such account is not allowed.
Which authority is responsible for confirming that an outward remittance meets tax-law requirements under the principle of separate checks?
The Authorised Dealer is responsible, as RBI's role is limited to FEMA permissibility and it does not adjudicate taxability.
In what capacity may an NRI joint holder operate a resident account held with them?
The NRI may operate only for and on behalf of the resident account holder.
MCQ practice tests
Chapter-wise mock tests with instant scoring.
More chapters in Module F
Master the full FOREIGNEXCHA syllabus
Every chapter of Foreign Exchange Facilities for Individuals — videos, tests, notes and one-liner decks in one place.