Corporate and Other LawsMCQQuestion 12576 of 300
All Questions

Under the Foreign Exchange Management (Current Account Transactions) Rules, 2000 (Schedule I), which of the following remittances is STRICTLY PROHIBITED?

Select Your Answer (Keyboard: A, B, C, D)
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option A — Remittance out of lottery winnings and racing/riding earnings

All Options:

  • ARemittance out of lottery winnings and racing/riding earnings ✓
  • BRemittance for payment of commission on exports under Rupee State Credit Route
  • CRemittance for hiring charges of transponders by TV channels
  • DRemittance of foreign tour expenses by an individual under LRS

Detailed Solution & Explanation

Correct Answer: Option **A** (Remittance out of lottery winnings and racing/riding earnings) **Statutory Provision (FEMA 1999 - Schedule I Prohibited Current Account Remittances):** Rule 3 read with Schedule I of Foreign Exchange Management (Current Account Transactions) Rules, 2000 strictly prohibits: (1) Remittance out of lottery winnings; (2) Remittance of income from racing/riding or any other hobby; (3) Remittance for purchase of lottery tickets, banned/proscribed magazines, football pools; (4) Payment of commission on exports made towards equity investment in JV/WOS. Therefore, Option A is the correct legal position under the ICAI curriculum.

More Questions from Corporate and Other Laws

Under Section 77(1) of the Companies Act, 2013, within what initial statutory period must a company register a charge created on its property or assets with the Registrar of Companies (ROC)?

Under Rule 3(3) of the Companies (Acceptance of Deposits) Rules, 2014, what is the maximum aggregate limit of deposits that an eligible public company can accept from its members and the public?

Which of the following is a requirement for a company to buy back its securities under the Companies Act, 2013?

What is the tax treatment of buyback of shares by an unlisted company?

Explain the concept of differential rights and its significance in the context of buyback of securities.

What are the legal provisions governing the buyback of securities by a company in India?

Ready to Master Corporate and Other Laws?

Practice all 300 questions with instant feedback, earn XP, track your streaks, and ace your CA Intermediate exam.

Start Practicing — It's Free