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Drawl of foreign exchange for the following is PROHIBITED under FEMA (current Schedule I):
ARemittance of income from lottery winnings
BTravel to Nepal and Bhutan
CEducation abroad
DForeign business travel
Answer & Solution
Correct answer: A. Remittance of income from lottery winnings
1. Schedule I of the Current Account Transactions Rules prohibits remittance of lottery winnings, income from racing/riding, magazines/journals listed and certain commissions.
2. These are not permissible at all.
3. Hence (C).
_Source: ICAI BoS CA Inter Paper 2 — FEMA 1999_