Liberalised Remittance Scheme (LRS)
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 maximum aggregate amount a resident individual can remit abroad under the Liberalised Remittance Scheme (LRS) in a single financial year without seeking prior RBI approval?
A resident individual may remit up to USD 2,50,000 per financial year under LRS without prior RBI approval, covering current account, capital account, or a combination of both purposes.
Are minors eligible to avail the Liberalised Remittance Scheme (LRS)?
Yes, minors are eligible to use LRS.
Does the LRS ceiling of USD 2,50,000 apply separately for each permitted purpose, or is it a single aggregate ceiling for all purposes combined?
The LRS ceiling is a single overall annual aggregate of USD 2,50,000 per financial year, not a separate ceiling per purpose; all permitted current and capital account remittances are counted together within this one limit.
Who must countersign Form A2 when a minor makes a remittance under LRS?
The natural guardian must countersign Form A2.
A resident individual has already remitted the full LRS limit for studies abroad in a financial year and wishes to make an additional remittance under LRS for another permitted purpose in the same year — is this allowed?
No additional remittance is permitted beyond the overall annual ceiling of USD 2,50,000; further remittance under LRS in the same financial year is not allowed as there is no fresh or separate ceiling per purpose.
Are partnership firms eligible to remit funds under the Liberalised Remittance Scheme?
No, partnership firms are not eligible under LRS.
Under LRS, does the USD 2,50,000 annual ceiling reset for each new transaction, or is it a per-financial-year aggregate limit?
The USD 2,50,000 limit is a per-financial-year aggregate, meaning all LRS remittances made by an individual across the entire financial year are accumulated and cannot collectively exceed this ceiling.
Are corporates eligible to use the Liberalised Remittance Scheme?
No, corporates are not eligible under LRS.
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