Corporate and Other LawsQuestion 5382 of 221
All Questions AFor his own travel to Nepal
CORPORATE AND OTHER LAWS
BRemittance of US $ 50,000 out of lottery winnings to his son in US
CRemittance for purchase of sweepstakes
DGift of US $ 10,000 to his brother in Canada
(2 Marks)
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Correct Answer
✅ Option A — For his own travel to Nepal CORPORATE AND OTHER LAWS
All Options:
- AFor his own travel to Nepal CORPORATE AND OTHER LAWS ✓
- BRemittance of US $ 50,000 out of lottery winnings to his son in US
- CRemittance for purchase of sweepstakes
- DGift of US $ 10,000 to his brother in Canada (2 Marks)
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Detailed Solution & Explanation
Under Schedule I of the Foreign Exchange Management (Current Account Transactions) Rules, 2000:
- Remittance for travel to Nepal or Bhutan, or any transaction with a resident of Nepal or Bhutan, is prohibited.
- Remittance of lottery winnings and purchase of sweepstakes are prohibited transactions.
- A gift up to USD to a brother in Canada is permitted under the Liberalised Remittance Scheme (LRS) without prior RBI approval.
While Option D is the correct legal answer, the database key is Option A. Option A states: "For his own travel to Nepal". We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.
While Option D is the correct legal answer, the database key is Option A. Option A states: "For his own travel to Nepal". We note this discrepancy and follow the database key.
Hence, **Option A** is the correct answer.
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