Violation of LRS Limit

[Jameskutty Antony]

In FEMA, if one person inadvertently sent USD 1,00,000/- under LRS where the LRS limit for that years was USD 75,000/-, can the department say entire USD 1 lac is violation? My logic is there is violation only to the extent of USD 25,000/-. Is there any decided cases in this aspect?

AI Summary

Clarification Sought on FEMA Breach: Is Entire $100,000 a Violation or Just Excess $25,000 Under LRS? A query was raised regarding a violation of the Liberalised Remittance Scheme (LRS) limit under the Foreign Exchange Management Act (FEMA). An individual inadvertently sent USD 100,000 when the LRS limit was USD 75,000, questioning whether the entire amount is a violation or just the excess USD 25,000. The response clarified that legal interpretation, not logic, governs such issues. The LRS, part of FEMA 1999 by the Reserve Bank of India, allows remittances up to USD 250,000 per year for legitimate purposes, excluding prohibited activities like buying lotteries. LRS applies to all resident individuals in India.