Liberalised Remittance Scheme
Liberalised Remittance Scheme (LRS Remittance ).
The Liberalised Remittance Scheme helps citizens and investors send and invest money overseas
Facility Extended
- For capital & current account transactions for resident individuals. (Including Minors)
- Not available to corporate, partnership firm, HUF, Trust, etc.
- PAN CARD is a must
- One year banking relationship (for capital a/c transactions).
- Limit enhanced to $250,000 (w.e.f. June 2015) in FY. (April to March)
PERMITTED PURPOSES as per Schedule III of extended Guidelines of FEMA 1999.
- Private visit to any Country (Except Nepal and Bhutan).
- Gift or Donation.
- Going abroad for Employment.
- Emigration.
- Maintenance of Close Relatives Abroad.
- Expenses in connection with medical treatment abroad.
- Studies Abroad etc.
Details of Tax Applicability on LRS is stated below
| Sl. No. | Type of Remittance | TCS Rates (till 30th Sep, 2023) | New TCS Rates (from 1st Oct, 2023) | Remarks |
| 1 | LRS for education financed by loan | Nil upto Rs. 7 Lakhs | Nil upto Rs. 7 Lakhs | No Change |
| 0.5% for Rs. 7 Lakhs or more | 0.5% for Rs. 7 Lakhs or more | |||
| 2 | LRS for Medical Treatment or Education other than point no.1 | Nil upto Rs. 7 Lakhs | Nil upto Rs. 7 Lakhs | No Change |
| 5% for Rs. 7 Lakhs or more | % for Rs. 7 Lakhs or more | |||
| 3 | LRS for other Purposes | Nil upto Rs. 7 Lakhs | Nil upto Rs. 7 Lakhs | No Change |
| 5% for Rs. 7 Lakhs or more | 20% for Rs. 7 Lakhs or more | TCS rate increased from 5% to 20% | ||
| 4 | TCS on Overseas Tour package | 5% without any threshold/ exemption | 5% upto Rs. 7 Lakhs | No Change |
| 20% for Rs. 7 Lakhs or more | TCS rate increased from 5% to 20% | |||
| 5 | TCS on international Debit Card usage | Nil upto Rs. 7 Lakhs | Nil upto Rs. 7 Lakhs | No Change |
| 5% for Rs. 7 Lakhs or more | 20% for Rs. 7 Lakhs or more | TCS rate increased from 5% to 20% |
