MEANING OF LRS, WHO CAN USE LRS, BASIC LIMIT, FAMILY-WISE, TRANSACTIONS NOT ALLOWED UNDER LRS, PERMISSIBLE CAPITAL ACCOUNT TRANSACTIONS UNDER LRS, REMITTANCES SUBSUMED WITHIN THE LRS LIMIT, PRIVATE VISITS ABROAD, DONATION
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 does LRS stand for in the context of foreign exchange?
LRS stands for Liberalised Remittance Scheme, introduced by the Reserve Bank of India to allow resident individuals to remit funds abroad up to a specified limit without prior RBI approval.
What is the full form of LRS in foreign exchange regulations?
Liberalised Remittance Scheme introduced by RBI in 2004.
Who is eligible to use the Liberalised Remittance Scheme?
All resident individuals, including minors, are eligible to use the LRS; however, corporates, partnership firms, HUFs, trusts, and other entities are not permitted to use this scheme.
Under LRS, can a resident individual remit funds for pursuing education abroad?
Yes, education abroad is a permissible current account transaction.
What is the current basic annual limit under the Liberalised Remittance Scheme?
The current basic annual limit under LRS is USD 250,000 per financial year (April–March) per resident individual for permissible current and capital account transactions.
Which regulatory authority governs the Liberalised Remittance Scheme?
Reserve Bank of India under FEMA 1999.
Can a minor remit funds abroad under the LRS?
Yes, minors can remit funds under LRS, provided the LRS declaration form is co-signed by the minor's natural guardian, and the remittance falls within the USD 250,000 annual ceiling.
Can LRS funds be remitted for acquiring overseas equity through employee stock option plans?
Yes, ESOPs abroad are permissible capital account transactions under LRS.
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