Liberalised Remittance Scheme (LRS) in the Context of Capital Account Transactions under FEMA
Under the Foreign Exchange Management Act (FEMA), 1999, all foreign exchange transactions are broadly classified as either current account or capital account transactions, depending on whether they result in a change in assets or liabilities of a person resident in India vis-à-vis the rest of the world. The Liberalised Remittance Scheme (LRS), introduced by the…
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Remittances under LRS for Current Account Transactions – Tax Collected at Source (TCS)
The Liberalised Remittance Scheme (LRS), introduced by the Reserve Bank of India (RBI), enables resident individuals to remit up to USD 250,000 per financial year for specified permissible transactions. This includes both current and capital account transactions, provided the remittances comply with the terms and conditions stipulated by the regulatory authorities. Key Aspects of LRS…
Read article Key Provisions under FEMA in Relation to the Liberalised Remittance Scheme (LRS): Permissible and Non-Permissible Remittances
Overview of FEMA, 1999 The Foreign Exchange Management Act (FEMA), 1999, governs the management of foreign exchange transactions in India. Under FEMA, transactions are broadly classified into current account transactions and capital account transactions. Current account transactions refer to transactions that do not alter the assets or liabilities of a person resident in India or…
Read article Understanding Capital Account Transactions and Current Account Transactions
Current account transactions and capital account transactions are the two main components of a country’s balance of payments, reflecting different types of financial interactions with the rest of the world. Current account transactions involve the flow of goods, services, income, and current transfers, while capital account transactions involve the flow of financial assets, like investments…
Read article Release of Foreign Exchange for Non-Trade Current Account Transactions under the Liberalised Remittance Scheme (LRS)
The Liberalised Remittance Scheme (LRS), introduced by the Reserve Bank of India (RBI), permits resident individuals in India to remit up to USD 250,000 per financial year for specified permissible transactions. These remittances may pertain to both current and capital account transactions, or a combination thereof, within the prescribed limit. This article outlines the provisions…
Electronic Payment Systems in India
An electronic payment sometimes called a digital payment is a good alternative to traditional methods of cash payment and speeds up transaction cycles from person to person, person to business, person to government, Government to person, business to business, business to Government, etc. “Faceless, Paperless, Cashless” is one of the professed roles of the Digital…
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