LRS - MAIN UMBRELLA FOR RESIDENT INDIVIDUALS, PRIVATE VISITS, GIFT DONATION, GOING ABROAD ON EMPLOYMENT, EMIGRATION, MAINTENANCE OF CLOSE RELATIVES ABROAD, BUSINESS TRIP, MEDICAL TREATMENT ABROAD, STUDIES ABROAD, SURRENDER P
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 66 rapid-fire Q&A cards.
What is the annual limit under the Liberalised Remittance Scheme (LRS) for a resident individual?
The annual limit under LRS is USD 2,50,000 per financial year per individual. This covers all permissible current and capital account transactions combined.
Under LRS, can a resident individual open a foreign currency account with a bank outside India?
Yes, resident individuals can open foreign currency accounts abroad under LRS.
Who is eligible to remit money under the Liberalised Remittance Scheme?
All resident individuals, including minors, are eligible under LRS. In the case of minors, the Form A2 must be signed by the minor's natural guardian.
What is the TCS rate applicable on LRS remittances exceeding ₹7 lakh in a financial year?
TCS is levied at 20% on LRS remittances exceeding ₹7 lakh annually.
Can a resident individual club remittances with another family member under LRS to exceed the annual limit?
No, clubbing of remittances with another person, including a close relative, is not permitted under LRS. Each individual must remit within their own USD 2,50,000 annual ceiling.
Is it mandatory to use PAN card for all LRS transactions?
Yes, PAN is mandatory for all transactions under LRS.
Which authority prescribes the LRS limits and the permissible transactions under the scheme?
The Reserve Bank of India (RBI) prescribes the LRS limits and permissible transactions under the Foreign Exchange Management Act (FEMA), 1999.
Can LRS remittances be made for purchasing lottery tickets or betting abroad?
No, LRS funds cannot be used for lottery tickets or betting.
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