Liberalised Remittance Scheme (LRS)

01-09-2025 03:59 PM - By Nexcel
LRS India: Foreign Remittance Rules, Limit & TCS Calculator 2025

Liberalised Remittance Scheme (LRS)

Your complete guide to sending money abroad from India under the RBI's LRS. Understand the foreign remittance rules, the $250,000 limit, and the latest Tax Collected at Source (TCS) rates for global transactions.

LRS Annual Limit Per Person

$250,000

Per financial year (April 1 - March 31)

LRS at a Glance

This section breaks down the core rules of the LRS. Here you can explore who is eligible to use the scheme and, crucially, what types of transactions are permitted and which are strictly forbidden. Use the tabs below to navigate these essential guidelines.

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Who is Eligible?

All resident individuals in India, including minors, are eligible to use the LRS. However, corporations, partnership firms, HUFs, and trusts are not.

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What's Allowed?

Current and capital account transactions like travel, education, medical treatment, gifts, donations, and overseas investments.

What's Not?

Direct/indirect remittances for margin trading, lottery tickets, and to countries identified as "non-cooperative" by the FATF.

LRS TCS Calculator for Foreign Remittance

A key component of sending money abroad is the Tax Collected at Source (TCS). The latest TCS rate depends on the purpose and amount of your outward remittance. This interactive calculator helps you estimate the TCS on your transaction, demystifying one of the most complex parts of the LRS rules.

Estimated TCS Payable

₹0.00

Enter an amount and select a purpose to see the calculation.

How to Send Money Abroad from India (LRS Process)

Wondering about the actual process of an outward remittance? This section provides a simplified, step-by-step guide. It outlines the documents needed and key stages from approaching your bank to the final transfer of funds, giving you a clear roadmap for your transaction under LRS rules.

1

Approach AD Bank

Visit your bank, which must be an Authorised Dealer (AD Category-I) for foreign exchange.

2

Submit Form A2

Fill out Form A2, which is a declaration for purchasing foreign exchange, and specify the purpose of remittance.

3

Provide PAN Card

A PAN card is mandatory for all transactions under the LRS.

4

Fund Transfer

Once documents are verified, the bank will debit your account and transfer the funds to the beneficiary.

Frequently Asked Questions

This final section addresses some of the most common questions about the Liberalised Remittance Scheme. If you have any lingering doubts, you may find the answers here. Simply click on a question to reveal the answer.

Yes, a minor can remit money under LRS. Form A2 must be countersigned by the minor's natural guardian. The limit of $250,000 applies to the minor as an individual.
Use of an International Credit Card for payments in a foreign currency for purchases abroad is not counted towards the LRS limit. However, certain TCS provisions may apply.
No, individuals are not required to file any returns with the Reserve Bank of India. The Authorised Dealer bank reports all transactions to the RBI.
No, the LRS limit is fixed for a financial year (April-March) and any unutilized balance cannot be carried forward to the next year. The limit resets to $250,000 on April 1st of each year.

© 2025 LRS Explainer. All information is for educational purposes only. Please consult a financial advisor for professional advice.

Nexcel