Mr. Amar (a resident individual) want to remit US$ 60,000 to his son in the USA after winning a big lottery. Considering the provisions of the…

CA Intermediate · Corporate and Other Laws · MTP · May 2024
Mr. Amar (a resident individual) want to remit US$ 60,000 to his son in the USA after winning a big lottery. Considering the provisions of the Foreign Exchange Management Act, 1999, choose the correct action which Mr. Amar would take to remit the said amount to his son in the USA.
(A) Visit a local bank and request a direct transfer to his son's US bank account.
(B) Cannot remit the said amount as remittance out of lottery winnings is prohibited.
(C) Travel to the USA personally with the cash winnings, to give it to his son.
(D) Convert the US Dollar winnings into a different currency before sending it to his son.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

Cannot remit the said amount as remittance out of lottery winnings is prohibited.

Topics: The Foreign Exchange Management Act, 1999

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