FOREX REMITTANCE FACILITIES FOR INDIVIDUALS
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What is the full form of FEMA as applicable to forex remittances in India?
FEMA stands for Foreign Exchange Management Act, 1999, which governs all foreign exchange transactions including remittances by individuals in India.
What is the maximum amount of foreign currency notes an individual can bring into India without declaration?
USD 5,000 or equivalent in foreign currency notes.
What is the Liberalised Remittance Scheme (LRS) and who introduced it?
LRS is a scheme introduced by the Reserve Bank of India (RBI) that allows resident individuals to remit up to a specified limit abroad each financial year for permitted current and capital account transactions.
What form must be filled for declaration of foreign exchange brought into India exceeding the prescribed limit?
Currency Declaration Form (CDF) at the port of entry.
What is the current annual limit per individual under the Liberalised Remittance Scheme (LRS)?
The current LRS limit is USD 250,000 per financial year per resident individual, which can be used for a variety of permissible purposes including education, travel, and investment abroad.
Under LRS, what is the threshold limit for remittances above which TCS is levied at 20%?
Remittances exceeding Rs. 7 lakh per financial year attract 20% TCS.
Can a minor remit funds abroad under LRS?
Yes, a minor can remit funds under LRS, but the LRS application form must be countersigned by the minor's natural guardian, and the limit remains USD 250,000 per financial year.
What is a Vostro account in the context of international banking?
Account maintained by a foreign bank with a domestic bank in local currency.
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