2 A BFM LRS and other Remittance Facilities for Residents
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One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the Liberalised Remittance Scheme (LRS) introduced by RBI?
LRS is a scheme under which resident individuals can remit up to USD 250,000 per financial year for any permissible current or capital account transaction, or a combination of both.
What is the maximum number of transactions allowed per year under MTSS for an individual receiver?
Maximum 30 transactions per financial year per beneficiary.
Who is eligible to remit funds under the LRS?
All resident individuals including minors are eligible under LRS; minors must have their natural guardian countersign the request form on their behalf.
Under LRS, can a resident individual gift money to a non-resident close relative?
Yes, gifting to non-resident close relatives is permitted under LRS.
What is the current annual limit under LRS for resident individuals?
The current limit under LRS is USD 250,000 per financial year (April–March) per individual.
What is the TCS threshold limit for LRS remittances for education funded by loan?
TCS at 0.5% applies above Rs 7 lakh for education loans.
Can corporates, partnership firms, and HUFs avail of the LRS facility?
No, LRS is available only to resident individuals and cannot be used by corporates, partnership firms, HUFs, trusts, or any other entity.
What TCS rate applies on LRS remittances for purposes other than education and medical treatment above Rs 7 lakh?
TCS at 20% applies on remittances above Rs 7 lakh for other purposes.
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