Which of the following is a current account transaction under section 2(j) of FEMA?

Correct answer: A) Remittance by a resident for the living expenses of his parents residing abroad

Explanation

Section 2(j) defines a current account transaction as one other than a capital account transaction. It includes payments in connection with foreign trade and services, interest on loans, net income from investments, and remittances for living expenses of parents, spouse and children residing abroad. Acquiring foreign property, foreign shares or long-term foreign borrowing alters assets or liabilities outside India and is a capital account transaction under section 2(e).