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With reference to the Liberalised Remittance Scheme, consider the following statements:
Under this scheme, all resident individuals, including minors, are allowed to freely remit up to USD 1,50,000 per financial year.
  • The Scheme is available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts, etc.
    Which of the statements given above is/are correct?
    • a)
      1 only
    • b)
      2 only
    • c)
      Both 1 and 2
    • d)
      Neither 1 nor 2
    Correct answer is option 'D'. Can you explain this answer?
    Most Upvoted Answer
    With reference to the Liberalised Remittance Scheme, consider the fol...
    The correct answer is option 'D' - Neither 1 nor 2.

    Explanation:
    The Liberalised Remittance Scheme (LRS) is a scheme introduced by the Reserve Bank of India (RBI) that allows resident individuals to freely remit a certain amount of money abroad for various purposes. Let's analyze the given statements:

    1) Under this scheme, all resident individuals, including minors, are allowed to freely remit up to USD 1,50,000 per financial year.
    This statement is incorrect. While it is true that the Liberalised Remittance Scheme allows resident individuals to remit money abroad, the limit of USD 1,50,000 per financial year is applicable only to resident individuals who are adults (18 years and above). Minors are not eligible to make remittances under this scheme.

    2) The Scheme is available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts, etc.
    This statement is also incorrect. The Liberalised Remittance Scheme is specifically designed for resident individuals and does not extend to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts, or any other entities. It is intended to facilitate individuals in meeting their personal financial needs abroad.

    The Liberalised Remittance Scheme allows resident individuals to remit money abroad for various purposes such as travel, education, medical treatment, investment in overseas stocks and real estate, gifting, donations, etc. However, the scheme does not extend to corporations, partnership firms, HUFs, trusts, or any other entities.

    In conclusion, neither statement 1 nor statement 2 is correct. The Liberalised Remittance Scheme is applicable only to resident individuals who are adults, and it does not include corporations, partnership firms, HUFs, trusts, or any other entities.
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    Community Answer
    With reference to the Liberalised Remittance Scheme, consider the fol...
    The Liberalised Remittance Scheme is the scheme of the Reserve Bank of India, introduced in 2004. Under this Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
    Hence, statement 1 is not correct. The Scheme is not available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts, etc. Hence, statement 2 is not correct.
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    With reference to the Liberalised Remittance Scheme, consider the following statements: Under this scheme, all resident individuals, including minors, are allowed to freely remit up to USD 1,50,000 per financial year. The Scheme is available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts, etc. Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
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    With reference to the Liberalised Remittance Scheme, consider the following statements: Under this scheme, all resident individuals, including minors, are allowed to freely remit up to USD 1,50,000 per financial year. The Scheme is available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts, etc. Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about With reference to the Liberalised Remittance Scheme, consider the following statements: Under this scheme, all resident individuals, including minors, are allowed to freely remit up to USD 1,50,000 per financial year. The Scheme is available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts, etc. Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for With reference to the Liberalised Remittance Scheme, consider the following statements: Under this scheme, all resident individuals, including minors, are allowed to freely remit up to USD 1,50,000 per financial year. The Scheme is available to corporations, partnership firms, Hindu Undivided Family (HUF), Trusts, etc. Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
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