LRS
Also called Liberalised Remittance Scheme
Liberalised Remittance Scheme: the RBI rule letting a resident individual send up to 250,000 US dollars abroad each financial year.
LRS, the Liberalised Remittance Scheme, is the RBI rule that lets a resident individual send up to 250,000 US dollars abroad each financial year, April to March. Investing in US shares through a foreign broker uses this limit, and big remittances attract TCS. See how to invest in US stocks from India.
Questions people ask
What is the full form of LRS?
LRS stands for Liberalised Remittance Scheme. It's the RBI rule under which a resident individual, including a minor, can freely send money abroad for permitted purposes, up to 250,000 US dollars per financial year.
Does the LRS limit cover only investments?
No. The one yearly limit covers all permitted remittances together: investing in foreign shares, travel, gifts, education and more. Companies, firms, HUFs and trusts can't use LRS.
Is tax collected when I send money under LRS?
Above 10 lakh rupees in a year, your bank collects tax at source on the excess, at 20% for purposes other than education or medical treatment. It counts as tax you've paid and is claimed in your return. Check the current rate before you send.
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