What is capital account and current account under LRS?
All transactions involving foreign exchange have been classified either as capital or current account transactions.
Current Account is an account showing the trade of merchandise, whereas the Capital Account gives place to all capital transactions. Capital account transactions are like opening of foreign currency account abroad with a bank or purchase of property and investments. Current account transactions include expenses during personal travel, gifting or donation or expense on medical treatment or education.
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What is capital account and current account under LRS?
All transactions involving foreign exchange have been classified either as capital or current account transactions. Current Account is an account showing the trade of merchandise, whereas the Capital Account gives place to all capital transactions. ...
Can the resident remitter lend under the LRS?
Yes, the resident remitter can give loan to relatives (as defined under the Companies Act) abroad under LRS as extension of loans is a permissible capital account transaction.
Can a sole proprietor remit funds under LRS?
For accounting purpose there is no distinction between the individual and owner. So, the proprietor as the owner of the business can remit up to the permissible limit under LRS. If a sole proprietorship firm intends to remit the money under LRS by ...
Who can avail LRS?
The LRS allows all resident individuals, including minors to freely remit. In case of minors, the LRS declaration form must be countersigned by the minor’s natural guardian. LRS is not available to corporates, partnership firms, HUF and Trusts. ...
Is PAN mandatory under LRS?
Yes, PAN mandatory under LRS