FEMA

Spending on International Credit Card on foreign trip expenses brought under FEMA Rules

Spending on International Credit Card on foreign trip expenses brought under FEMA Rules

As per Rule 5 of the the Foreign Exchange Management (Current Account Transactions) Rules, 2000 read with Schedule III, Individuals can avail of foreign exchange facility for specified purposes (i.e. foreign travel/tour, studies abroad, medical treatment etc. ) within the limit of USD 2,50,000. Any additional remittance in excess of the said limit for the following purposes shall require prior approval of the Reserve Bank of India.

However, Rule 7 provided exception to the above by providing that the Rule 5 shall not apply to the use of International Credit Card for making payment by a person towards meeting expenses while such person is on a visit outside India.

The Ministry of Finance has issued a Notification No. GSR 369(E) dated 16th May 2023 omitting the Rule 7. This by implication means that the prescribed limit of USD 2,50,000 shall also apply to the use of international credit card for meeting expenses while on a foreign visit.

Download Notification Click Here >>

Share

Recent Posts

  • Income Tax

No addition on mere valuation report when stamp duty valuation is available

Addition can not be made relying on the valuation report of property when the stamp duty valuation is also available…

4 hours ago
  • Income Tax

ITAT deleted penalty for making a wrong claim of deduction u/s 54F/54B

Wrong claim of deduction u/s 54F/54B was not a case of concealment of particulars of income or furnishing inaccurate particulars…

6 hours ago
  • GST

Value of taxable supply and rates notified Pan Masala / tobacco products

CBIC notifies GST rates and value of taxable supply for Biris, Pan Masala / tobacco products  Ministry of Finance(Department of…

10 hours ago
  • Excise/Custom

CBIC issues SOP for wearing Body Cam by Custom officers in Baggage Clearance

CBIC has issued a Standard Operating Procedure (SoP) for wearing Body Cam by Custom officers responsible for Baggage Clearance According…

23 hours ago
  • Companies Act

MCA amends rules regarding Directors KYC and updation

MCA amends rules regarding Directors KYC and updation MINISTRY OF CORPORATE AFFAIRSNOTIFICATION New Delhi, the 31st December, 2025 G.S.R. 943(E).—In…

1 day ago
  • ICAI

ICAI again defers Phase IV of Peer Review Mandate to 31.12.2026

Deferment of ICAI Phase IV Peer Review Mandate to 31.12.2026 The ICAI has decided that Phase IV of the Peer…

1 day ago