{"id":30724,"date":"2025-12-18T18:22:27","date_gmt":"2025-12-18T12:52:27","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=30724"},"modified":"2025-12-19T01:58:06","modified_gmt":"2025-12-18T20:28:06","slug":"faqs-related-with-lrs-scheme-usd-250000-per-fy","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/","title":{"rendered":"FAQs related with LRS Scheme (USD 2,50,000 per FY)"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e8010c6c699\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e8010c6c699\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#FAQs_related_with_Liberalised_Remittance_Scheme_USD_250000_per_FY\" title=\"FAQs related with Liberalised Remittance Scheme (USD 2,50,000 per FY)\">FAQs related with Liberalised Remittance Scheme (USD 2,50,000 per FY)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q1_What_is_the_Liberalised_Remittance_Scheme_of_USD_250000\" title=\"Q1. What is the Liberalised Remittance Scheme of USD 2,50,000?\">Q1. What is the Liberalised Remittance Scheme of USD 2,50,000?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q2_What_are_the_prohibited_transactions_under_Liberalised_Remittance_Scheme\" title=\"Q2. What are the prohibited transactions under Liberalised Remittance Scheme?\">Q2. What are the prohibited transactions under Liberalised Remittance Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q3_What_purposes_are_allowed_under_FEM_CAT_Amendment_Rules_2015\" title=\"Q3. What purposes are allowed under FEM (CAT) Amendment Rules, 2015?\">Q3. What purposes are allowed under FEM (CAT) Amendment Rules, 2015?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q4_Is_income_earned_abroad_under_Liberalised_Remittance_Scheme_required_to_be_repatriated\" title=\"Q4. Is income earned abroad under Liberalised Remittance Scheme required to be repatriated?\">Q4. Is income earned abroad under Liberalised Remittance Scheme required to be repatriated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q5_Can_Liberalised_Remittance_Scheme_limits_be_consolidated_for_family_members\" title=\"Q5. Can Liberalised Remittance Scheme limits be consolidated for family members?\">Q5. Can Liberalised Remittance Scheme limits be consolidated for family members?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q6_Is_the_AD_bank_required_to_verify_the_transaction_purpose\" title=\"Q6. Is the AD bank required to verify the transaction purpose?\">Q6. Is the AD bank required to verify the transaction purpose?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q7_Is_PAN_mandatory_under_Liberalised_Remittance_Scheme\" title=\"Q7. Is PAN mandatory under Liberalised Remittance Scheme?\">Q7. Is PAN mandatory under Liberalised Remittance Scheme?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q8_Are_there_limits_on_the_frequency_of_remittances\" title=\"Q8. Are there limits on the frequency of remittances?\">Q8. Are there limits on the frequency of remittances?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q9_Can_remittances_exceed_USD_250000_for_salary_earners_not_permanently_resident_in_India\" title=\"Q9. Can remittances exceed USD 2,50,000 for salary earners not permanently resident in India?\">Q9. Can remittances exceed USD 2,50,000 for salary earners not permanently resident in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q10_Does_the_one-year_banking_relationship_requirement_apply_to_all_remittances\" title=\"Q10. Does the one-year banking relationship requirement apply to all remittances?\">Q10. Does the one-year banking relationship requirement apply to all remittances?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q11_Are_remittances_to_Mauritius_and_Pakistan_allowed\" title=\"Q11. Are remittances to Mauritius and Pakistan allowed?\">Q11. Are remittances to Mauritius and Pakistan allowed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q12_What_are_the_key_compliance_requirements_for_remitters\" title=\"Q12. What are the key compliance requirements for remitters?\">Q12. What are the key compliance requirements for remitters?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q13_Can_remittances_be_made_only_in_USD\" title=\"Q13. Can remittances be made only in USD?\">Q13. Can remittances be made only in USD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q14%E2%80%9315_Are_there_restrictions_on_overseas_investments\" title=\"Q14\u201315. Are there restrictions on overseas investments?\">Q14\u201315. Are there restrictions on overseas investments?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q16_Can_AD_banks_provide_loans_for_LRS_remittances\" title=\"Q16. Can AD banks provide loans for LRS remittances?\">Q16. Can AD banks provide loans for LRS remittances?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q17%E2%80%9318_Can_residents_open_foreign_currency_accounts_in_India_under_LRS\" title=\"Q17\u201318. Can residents open foreign currency accounts in India under LRS?\">Q17\u201318. Can residents open foreign currency accounts in India under LRS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q18_Are_Forms_15CA_15CB_mandatory_for_all_remittances\" title=\"Q18. Are Forms 15CA \/ 15CB mandatory for all remittances?\">Q18. Are Forms 15CA \/ 15CB mandatory for all remittances?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q19_LLP-sponsored_education_expenses_%E2%80%93_covered_under_LRS\" title=\"Q19.\u00a0 LLP-sponsored education expenses \u2013 covered under LRS?\">Q19.\u00a0 LLP-sponsored education expenses \u2013 covered under LRS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q20_what_is_LRS_applicability_to_sole_proprietors\" title=\"Q20. what is LRS applicability to sole proprietors?\u00a0\">Q20. what is LRS applicability to sole proprietors?\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q21_Is_RBI_approval_required_to_open_overseas_bank_accounts_under_LRS\" title=\"Q21. Is RBI approval required to open overseas bank accounts under LRS?\">Q21. Is RBI approval required to open overseas bank accounts under LRS?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q22_Facilities_under_Schedule_III_for_non-individuals\" title=\"Q22. Facilities under Schedule III for non-individuals\">Q22. Facilities under Schedule III for non-individuals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/carajput.com\/blog\/faqs-related-with-lrs-scheme-usd-250000-per-fy\/#Q23_Loans_and_gifts_to_NRIPIO_relatives\" title=\"Q23. Loans and gifts to NRI\/PIO relatives?\u00a0\">Q23. Loans and gifts to NRI\/PIO relatives?\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9209\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/lrs.jpg\" alt=\"www.carajput.com; LRS\" width=\"1003\" height=\"524\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/lrs.jpg 310w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2020\/10\/lrs-300x157.jpg 300w\" sizes=\"(max-width: 1003px) 100vw, 1003px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"FAQs_related_with_Liberalised_Remittance_Scheme_USD_250000_per_FY\"><\/span><span style=\"color: #000080;\"><strong>FAQs related with Liberalised Remittance Scheme <em>(USD 2,50,000 per FY)<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Q1_What_is_the_Liberalised_Remittance_Scheme_of_USD_250000\"><\/span><span style=\"color: #000080;\"><strong>Q1. What is the Liberalised Remittance Scheme of USD 2,50,000?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: Under the Liberalised Remittance Scheme, resident individuals, including minors, are permitted to remit up to USD 2,50,000 per financial year (April\u2013March) for permissible current and capital account transactions, or a combination thereof.<\/p>\n<p>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. &amp; For minors, the LRS declaration must be countersigned by the natural guardian<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q2_What_are_the_prohibited_transactions_under_Liberalised_Remittance_Scheme\"><\/span><span style=\"color: #000080;\"><strong>Q2. What are the prohibited transactions under Liberalised Remittance Scheme?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q3_What_purposes_are_allowed_under_FEM_CAT_Amendment_Rules_2015\"><\/span><span style=\"color: #000080;\"><strong>Q3. What purposes are allowed under FEM (CAT) Amendment Rules, 2015?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: Within the LRS limit of USD 2,50,000 per FY, foreign exchange can be availed for Private visits (excluding Nepal &amp; 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.<\/p>\n<p>Authorized dealer banks may process residual current account transactions without RBI approval, subject to due diligence.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q4_Is_income_earned_abroad_under_Liberalised_Remittance_Scheme_required_to_be_repatriated\"><\/span><span style=\"color: #000080;\"><strong>Q4. Is income earned abroad under Liberalised Remittance Scheme required to be repatriated?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q5_Can_Liberalised_Remittance_Scheme_limits_be_consolidated_for_family_members\"><\/span><span style=\"color: #000080;\"><strong>Q5. Can Liberalised Remittance Scheme limits be consolidated for family members?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: Yes, remittances may be consolidated for family members subject to individual compliance with <strong>Liberalised Remittance Scheme <\/strong>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<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q6_Is_the_AD_bank_required_to_verify_the_transaction_purpose\"><\/span><span style=\"color: #000080;\"><strong>Q6. Is the AD bank required to verify the transaction purpose?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q7_Is_PAN_mandatory_under_Liberalised_Remittance_Scheme\"><\/span><span style=\"color: #000080;\"><strong>Q7. Is PAN mandatory under Liberalised Remittance Scheme?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: Yes. PAN is mandatory for all Liberalised Remittance Scheme transactions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q8_Are_there_limits_on_the_frequency_of_remittances\"><\/span><span style=\"color: #000080;\"><strong>Q8. Are there limits on the frequency of remittances?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: No restriction on frequency. However, total remittances in a financial year must not exceed USD 2,50,000, irrespective of repatriation of proceeds.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q9_Can_remittances_exceed_USD_250000_for_salary_earners_not_permanently_resident_in_India\"><\/span><span style=\"color: #000080;\"><strong>Q9. Can remittances exceed USD 2,50,000 for salary earners not permanently resident in India?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: Such individuals may approach RBI through their AD bank with supporting documents for consideration.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q10_Does_the_one-year_banking_relationship_requirement_apply_to_all_remittances\"><\/span><span style=\"color: #000080;\"><strong>Q10. Does the one-year banking relationship requirement apply to all remittances?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q11_Are_remittances_to_Mauritius_and_Pakistan_allowed\"><\/span><span style=\"color: #000080;\"><strong>Q11. Are remittances to Mauritius and Pakistan allowed?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: Yes, for permissible current account transactions, subject to FATF and RBI restrictions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q12_What_are_the_key_compliance_requirements_for_remitters\"><\/span><span style=\"color: #000080;\"><strong>Q12. What are the key compliance requirements for remitters?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: Designate one AD bank for capital account transactions<\/p>\n<ul>\n<li>Maintain bank account for minimum one year (capital account)<\/li>\n<li>Submit Form A2<\/li>\n<li>Provide source of funds (bank statements \/ ITR)<\/li>\n<li>Declare funds are not for prohibited purposes<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q13_Can_remittances_be_made_only_in_USD\"><\/span><span style=\"color: #000080;\"><strong>Q13. Can remittances be made only in USD?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: No. Remittances can be made in any freely convertible foreign currency.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q14%E2%80%9315_Are_there_restrictions_on_overseas_investments\"><\/span><span style=\"color: #000080;\"><strong>Q14\u201315. Are there restrictions on overseas investments?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .:No minimum rating or quality norms prescribed<\/p>\n<ul>\n<li>Investments must comply with Overseas Investment Rules &amp; Regulations, 2022<\/li>\n<li>Investors must exercise due diligence<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Q16_Can_AD_banks_provide_loans_for_LRS_remittances\"><\/span><span style=\"color: #000080;\"><strong>Q16. Can AD banks provide loans for LRS remittances?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .:Not permitted for capital account transactions. Permitted for current account transactions<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q17%E2%80%9318_Can_residents_open_foreign_currency_accounts_in_India_under_LRS\"><\/span><span style=\"color: #000080;\"><strong>Q17\u201318. Can residents open foreign currency accounts in India under LRS?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: No., Foreign currency accounts in India or OBUs cannot be treated as overseas branches.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q18_Are_Forms_15CA_15CB_mandatory_for_all_remittances\"><\/span><span style=\"color: #000080;\"><strong>Q18. Are Forms 15CA \/ 15CB mandatory for all remittances?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q19_LLP-sponsored_education_expenses_%E2%80%93_covered_under_LRS\"><\/span><span style=\"color: #000080;\"><strong>Q19.\u00a0 LLP-sponsored education expenses \u2013 covered under LRS?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .:No. LLP is a separate legal entity. Such remittances are outside the partner\u2019s LRS limit.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q20_what_is_LRS_applicability_to_sole_proprietors\"><\/span><span style=\"color: #000080;\"><strong>Q20. what is LRS applicability to sole proprietors?\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans .: A sole proprietor and individual are the same legal person. The USD 2,50,000 limit applies collectively, not separately.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q21_Is_RBI_approval_required_to_open_overseas_bank_accounts_under_LRS\"><\/span><span style=\"color: #000080;\"><strong>Q21. Is RBI approval required to open overseas bank accounts under LRS?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\">Ans .:No.RBI approval is not required to open overseas bank accounts under LRS<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q22_Facilities_under_Schedule_III_for_non-individuals\"><\/span><span style=\"color: #000080;\"><strong>Q22. Facilities under Schedule III for non-individuals<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Ans. Specified limits apply for Donations, Commission payments, Consultancy services, Pre-incorporation expenses, Any excess requires prior RBI approval.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q23_Loans_and_gifts_to_NRIPIO_relatives\"><\/span><span style=\"color: #000080;\"><strong>Q23. Loans and gifts to NRI\/PIO relatives?\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Ans. <\/strong>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<\/p>\n","protected":false},"excerpt":{"rendered":"<p>FAQs related with Liberalised Remittance Scheme (USD 2,50,000 per FY) Q1. What is the Liberalised Remittance Scheme of USD 2,50,000? Ans .: Under the Liberalised Remittance Scheme, resident individuals, including minors, are permitted to remit up to USD 2,50,000 per financial year (April\u2013March) for permissible current and capital account transactions, or a combination thereof. The &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9909],"tags":[10388],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30724"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=30724"}],"version-history":[{"count":3,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30724\/revisions"}],"predecessor-version":[{"id":30727,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/30724\/revisions\/30727"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=30724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=30724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=30724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}