Violation of LRS Limit, FEMA

[Jameskutty Antony]

In FEMA, if one person inadvertently sent USD 1,00,000/- under LRS where the LRS limit for that years was USD 75,000/-, can the department say entire USD 1 lac is violation? My logic is there is violation only to the extent of USD 25,000/-. Is there any decided cases in this aspect?

Posts / Replies

[YAGAY andSUN]

In legal matters logic does not work but interpretation does.

The Liberalised Remittance Scheme (LRS) lays down the guidelines for outward remittances from India.

It is part of the Foreign Exchange Management Act (FEMA) 1999 by the Reserve Bank of India (RBI).

Under the LRS, the upper limit of remittance is $2,50,000 per financial year.

You can send money abroad for genuine reasons like your child's education or to fund personal expenses.

You cannot remit funds abroad for buying lotteries or banned magazines, amongst others.

LRS applies to all resident individuals in India.