CA Inter P2 · Chapter 13 · Question 9 of 10
A person contravenes a provision of FEMA, and the sum involved in the contravention is quantifiable at ₹4 lakh. Under section 13(1), the maximum penalty that can be imposed (ignoring any continuing contravention) is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) ₹12 lakh
Explanation
Section 13(1) provides for a penalty of up to thrice the sum involved where the amount is quantifiable, or up to ₹2 lakh where it is not quantifiable. A continuing contravention attracts a further penalty of up to ₹5,000 per day after the first day. Maximum = 3 x ₹4 lakh = ₹12 lakh.
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