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Under Section 2(e) of FEMA, a 'Capital Account Transaction' is one that:
Answer & Solution
Correct answer: B.
1. Section 2(e) of FEMA — a capital account transaction is defined by its impact on assets/liabilities across borders.
2. Section 6 governs permissible capital account transactions.
3. Hence (B).
_Source: ICAI BoS CA Inter Paper 2 — FEMA 1999_