Module: General Practice
Q26: Section 13 of FEMA, 1999 prescribes the quantum of penalty for contraventions. If the amount involved in the contravention is quantifiable, what is the maximum penalty that can be imposed?
✅ Correct Answer: A
Penalty Limits (Section 13): Quantifiable Amount: If the amount involved is quantifiable, the penalty can be up to three times the sum involved in such contravention.
Unquantifiable Amount: If the amount is not quantifiable, the penalty can be up to ₹2 Lakhs.
Continuing Contravention: If the contravention continues after the first day, a further penalty of up to ₹5,000 per day can be imposed.
Unquantifiable Amount: If the amount is not quantifiable, the penalty can be up to ₹2 Lakhs.
Continuing Contravention: If the contravention continues after the first day, a further penalty of up to ₹5,000 per day can be imposed.