Module: General Practice
Q42: Regarding the Liberalised Remittance Scheme (LRS) for resident individuals, identify the correct statements:
1. The overall limit for remittance is USD 250,000 per financial year.
2. The scheme is available to Corporates, Partnership Firms, and HUFs.
3. The limit can be used for both Current Account (travel, education) and Capital Account (buying shares/property) transactions.
2. The scheme is available to Corporates, Partnership Firms, and HUFs.
3. The limit can be used for both Current Account (travel, education) and Capital Account (buying shares/property) transactions.
✅ Correct Answer: B
Analysis of Stmt 1 (Correct): The limit has been USD 250,000 per Financial Year (April-March) since its revision in 2015.
Analysis of Stmt 2 (Incorrect): LRS is available ONLY to Resident Individuals (including minors). It is NOT available to Corporates, Partnership Firms, HUFs, or Trusts.
They have different routes (e.g., Overseas Direct Investment - ODI). Analysis of Stmt 3 (Correct): LRS is a unique "fungible" limit.
A resident can use $250k entirely for a holiday (Current) OR entirely to buy Apple Inc. shares (Capital) OR a mix of both.
Analysis of Stmt 2 (Incorrect): LRS is available ONLY to Resident Individuals (including minors). It is NOT available to Corporates, Partnership Firms, HUFs, or Trusts.
They have different routes (e.g., Overseas Direct Investment - ODI). Analysis of Stmt 3 (Correct): LRS is a unique "fungible" limit.
A resident can use $250k entirely for a holiday (Current) OR entirely to buy Apple Inc. shares (Capital) OR a mix of both.