Module: General Practice
Q12: Under Schedule I of the Current Account Transactions Rules, certain remittances are prohibited. For which of the following purposes is the remittance of foreign exchange NOT prohibited?
✅ Correct Answer: D
Prohibited vs.
Permitted: Options A, B, and C are explicitly listed in Schedule I as Prohibited transactions.
You cannot send money out of India for lottery, gambling, or specifically paying export commissions if that commission is being used to fund an equity stake (round-tripping prevention). Option D: Remittance for purchasing a trademark or technology is a permitted Current Account transaction (often classified under technical services/royalties) or a Capital Account transaction depending on the structure, but it is not on the Prohibited List of Schedule I.
Permitted: Options A, B, and C are explicitly listed in Schedule I as Prohibited transactions.
You cannot send money out of India for lottery, gambling, or specifically paying export commissions if that commission is being used to fund an equity stake (round-tripping prevention). Option D: Remittance for purchasing a trademark or technology is a permitted Current Account transaction (often classified under technical services/royalties) or a Capital Account transaction depending on the structure, but it is not on the Prohibited List of Schedule I.