What is LRS or RBI’s Liberalised Remittance Scheme? Indian residents can send money abroad. Individuals can remit up to $2,50,000 annually. This is without special permission from the RBI. The scheme is for education, travel, investments, and more. Tax is applicable depending on the purpose of remittance
1. LRS is a facility provided by the Reserve Bank of India (RBI) that allows resident individuals in India to send money abroad.2. Individuals can remit up to $2,50,000 per financial year (April– March) without special permission from the RBI
3. Only resident individuals, including minors (through a guardian), are eligible. The scheme does not apply to companies, partnerships, or trusts.
4. Funds can be remitted for various purposes, including education and medical expenses abroad, travel, gifting and donations, investments in foreign stocks, bonds, real estate, and deposits.
5. Depending on the purpose, tax collected at source, or TCS, of up to 20% may be applicable on the remitted amount.
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Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
This story originally appeared on: India Times - Author:Faqs of Insurances
