INVESTMENT OPPORTUNITIES ABROAD FOR RESIDENTS
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Foreign Exchange Facilities for Individuals — Foreign Exchange Facilities for Individuals.
One-liners from this chapter
Free sample — 8 of 65 rapid-fire Q&A cards.
What is the Liberalised Remittance Scheme (LRS) and who is eligible to use it?
LRS is an RBI scheme that allows all resident individuals, including minors, to remit up to USD 2,50,000 per financial year for any permissible current or capital account transaction.
What is the maximum amount a resident individual can remit abroad under LRS in a single financial year?
USD 2,50,000 per financial year per individual.
What is the annual limit for remittances under the Liberalised Remittance Scheme?
Resident individuals can remit up to USD 2,50,000 per financial year (April to March) under the LRS without requiring prior RBI approval.
Under which act is the Liberalised Remittance Scheme governed in India?
Foreign Exchange Management Act (FEMA), 1999.
Can resident individuals invest in foreign stocks and mutual funds under LRS?
Yes, resident individuals may acquire foreign equity shares, bonds, and mutual funds of overseas companies under LRS within the annual limit of USD 2,50,000.
Can a resident Indian use LRS funds to purchase foreign currency bonds issued by Indian companies?
No, such investments are not permitted under LRS.
What rate of Tax Collected at Source (TCS) applies to LRS remittances above INR 7 lakh in a financial year?
Remittances above INR 7 lakh under LRS attract TCS at 20% (reduced to 5% for education and medical treatment remittances where a loan is taken from a financial institution).
What is the full form of LRS in the context of RBI's foreign exchange regulations?
Liberalised Remittance Scheme.
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