# Current Account Transactions — Schedule III: Freely Permitted up to Specified Limit
FEM (Current Account Transactions) Rules, 2000
Schedule III transactions are freely permitted up to a specified limit. Above that limit, prior approval of RBI is required.
## A. Remittance by Individuals
| Remittance/Drawal for | Freely Permitted Limit |
|---|---|
| Emigration, Medical treatment & Studies abroad (if required by the country of emigration / medical institute / university) | No limit (freely permitted) |
| Any other CUAT (business tour, gift, donation, etc.) by a person resident but not permanently resident in India (i.e., on deputation / specific job up to 3 years), who is a citizen of:<br>• a foreign state other than Pakistan, OR<br>• India (deputed by a foreign company or its subsidiary/JV) | Up to his Net Salary (gross salary minus PF contribution, tax and other deductions) |
| Any other person (any other CUAT) | US$ 2,50,000 per FY — can be consolidated with family members |
### Liberalised Remittance Scheme (LRS) — Key Notes
1. If the remitter is a minor, the LRS declaration must be countersigned by the natural guardian to allow the US$ 2,50,000 remittance.
2. The US$ 2,50,000 limit in a FY includes Schedule III remittances such as emigration, medical treatment and studies abroad (so once consumed, they reduce the limit).
## B. Remittance by Persons Other than Individuals
| Remittance/Drawal for | Freely Permitted Limit |
|---|---|
| Donations for: (a) creation of chairs in reputed educational institutes; (b) contribution to funds (other than investment funds) promoted by educational institutes; (c) contribution to technical institutions in the donor's field of activity | Lower of: 1% of forex earnings of previous 3 FYs OR US$ 50,00,000 |
| Commission to agents abroad for sale of residential flats / commercial plots in India (per transaction). Commission is paid in proportion to amount received in India from the PROI. | Higher of: 5% of inward remittance OR US$ 25,000 |
| Consultancy service procured from outside India for infrastructure projects (per project) | US$ 1,00,00,000 (1 crore USD) |
| Other consultancy services procured from outside India (per project) | US$ 10,00,000 (10 lakh USD) |
| Reimbursement of pre-incorporation expenses by an entity in India | Higher of: 5% of investment brought in OR US$ 1,00,000 |
| Any other CUAT | US$ 2,50,000 per FY |
## Special Account Rules
### From a Resident Foreign Currency (RFC) Account
No approval is required for transactions in Schedule II and Schedule III.
### From an Exchange Earners Foreign Currency (EEFC) Account
No approval is required for Schedule II and Schedule III, except the following three (which still need approval/are subject to the prescribed limits):
1. Membership of P & I Club.
2. Commission to agents abroad for sale of residential flats/commercial plots in India — in excess of the prescribed limit.
3. Reimbursement of pre-incorporation expenses — in excess of the prescribed limit.
## Other Key Rules
- Amount remitted under Schedule III (including emigration, medical and studies abroad) in a FY is reduced from the US$ 2,50,000 limit.
- No restriction on receipt of foreign exchange for any CUAT — the regulation is on drawal/remittance.