A Forex facilities to Resident Individuals
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What is the basic entitlement of a resident individual under the Liberalised Remittance Scheme (LRS)?
A resident individual can remit up to USD 2,50,000 per financial year for any permissible current or capital account transaction under LRS.
What is the full form of LRS in the context of foreign exchange for resident individuals?
Liberalised Remittance Scheme, introduced by RBI in 2004.
Which authority governs foreign exchange facilities available to resident individuals in India?
The Reserve Bank of India (RBI) governs these facilities under the Foreign Exchange Management Act (FEMA), 1999.
Under which act are forex facilities to resident individuals regulated in India?
Foreign Exchange Management Act (FEMA), 1999.
Can a resident individual open a foreign currency account in India?
Yes, a resident individual can open a Resident Foreign Currency (RFC) account or a Foreign Currency Non-Resident (FCNR) account if eligible, or an RFC (Domestic) account for holding foreign currency earned within India.
What is the current annual LRS limit per resident individual for overseas remittances?
USD 2,50,000 per financial year per individual.
What is an RFC (Domestic) account and who can open it?
An RFC (Domestic) account is a foreign currency account that resident individuals can open to credit foreign exchange received as gift, honorarium, or earned through services abroad, with a limit of USD 2,000.
Which category of resident individuals is NOT eligible to remit under LRS?
Corporates, partnership firms, HUF, trusts, and societies.
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