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Ans .: Under the Liberalised Remittance Scheme, resident individuals, including minors, are permitted to remit up to USD 2,50,000 per financial year (April–March) for permissible current and capital account transactions, or a combination thereof.
The Scheme was introduced on 4 February 2004 with an initial limit of USD 25,000, which has been progressively enhanced in line with economic conditions. Key points Applicable only to resident individuals, Not available to corporates, partnership firms, LLPs, HUFs, trusts, etc. & For minors, the LRS declaration must be countersigned by the natural guardian
Ans .: Remittances are not permitted for Items prohibited under Schedule I (e.g., lottery tickets, proscribed magazines), Transactions restricted under Schedule II of FEMA (CAT) Rules, 2000, Margin trading / margin calls abroad, Purchase of FCCBs in overseas secondary markets, Foreign exchange trading abroad, Capital account remittances to FATF non-cooperative countries, Remittances to individuals/entities identified as terrorism-related, Foreign currency gifts by a resident to another resident for credit to overseas accounts
Ans .: Within the LRS limit of USD 2,50,000 per FY, foreign exchange can be availed for Private visits (excluding Nepal & Bhutan), Gifts or donations, employment, emigration, maintenance of close relatives abroad, business travel, conferences, training, medical treatment abroad, Education abroad, Any other permissible current account transaction.
Authorized dealer banks may process residual current account transactions without RBI approval, subject to due diligence.
Ans .: Income earned on overseas investments may be retained and reinvested abroad. Unused or unspent foreign exchange (unless reinvested) must be repatriated within 180 days. Additional repatriation requirements under Overseas Investment Rules, 2022 must be complied with
Ans .: Yes, remittances may be consolidated for family members subject to individual compliance with Liberalised Remittance Scheme conditions. However: Clubbing is not permitted for capital account transactions unless joint ownership exists. Consolidation is permitted for acquisition of immovable property abroad by relatives
Ans .: Yes. AD banks rely on Form A2 declarations and certify compliance with RBI instructions. However, ultimate responsibility lies with the remitter for FEMA compliance.
Ans .: Yes. PAN is mandatory for all Liberalised Remittance Scheme transactions.
Ans .: No restriction on frequency. However, total remittances in a financial year must not exceed USD 2,50,000, irrespective of repatriation of proceeds.
Ans .: Such individuals may approach RBI through their AD bank with supporting documents for consideration.
Ans .: No. The one-year account requirement applies only to capital account transactions. Current account transactions can also be facilitated by FFMCs, subject to KYC/AML norms.
Ans .: Yes, for permissible current account transactions, subject to FATF and RBI restrictions.
Ans .: Designate one AD bank for capital account transactions
Ans .: No. Remittances can be made in any freely convertible foreign currency.
Ans .:No minimum rating or quality norms prescribed
Ans .:Not permitted for capital account transactions. Permitted for current account transactions
Ans .: No., Foreign currency accounts in India or OBUs cannot be treated as overseas branches.
Ans .: Tax compliance must be ensured as per Income-tax Act. RBI does not prescribe TDS procedures; AD banks must ensure applicable tax laws are followed.
Ans .:No. LLP is a separate legal entity. Such remittances are outside the partner’s LRS limit.
Ans .: A sole proprietor and individual are the same legal person. The USD 2,50,000 limit applies collectively, not separately.
Ans .:No.RBI approval is not required to open overseas bank accounts under LRS
Ans. Specified limits apply for Donations, Commission payments, Consultancy services, Pre-incorporation expenses, Any excess requires prior RBI approval.
Ans. Permitted subject to Interest-free loan, minimum 1-year maturity; Within LRS limit; Credit to NRO account; No remittance outside India; Usage restricted to permitted purposes
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