The term “current account transaction” is defined in Section 2(j) of the FEMA. This means a transaction that is not a capital account transaction. The term “Capital Account Transaction” is defined in Section 2(e) of the Foreign Exchange Management Act (FEMA). This means that a transaction that changes the assets or liabilities outside India of people who live in India or changes the assets or liabilities in India of people who live outside India.
Monnishaa Mahajan, Principal Attorney at Legal Help NRI. Monnishaa has an experience of more than 15 years in assisting and advising NRI's in resolving their disputes in India.