Liberalised Remittance Scheme (LRS), a resident individual can remit upto US$ 250,000 per financial year for permitted Capital & Current account transaction.
The Capital & Current account transaction includes:-
- Investments, Opening Bank account, buying property abroad.
- Private visits/ business trips.
- Going abroad for employment.
- Emigration.
- Maintenance of close relatives* abroad.
- Medical treatment of relatives* abroad.
- Expenses for students studying abroad.
- To give loans & gifts as per prescribed conditions.
- This scheme is available only to individual and not to corporates, partnership firms, HUF, Trusts.
- Release of Foreign Exchange exceeding US$ 250,000 requires prior approval of RBI.
- However, in case of medical treatment and studies abroad amount exceeding US$ 250,000 can be remitted on the basis of estimate from the hospital or institution. In that case, approval from RBI is not required.
Form No. 15 CA & 15 CB is not required for transfer of funds under LRS (CBDT Press Release dt. 17/12/2015).
Form A2 has to be filled and submitted to the bank giving following details:
- PAN card
- Amount in INR & foreign currency
- Purpose of remittance
- Details of beneficiary
Tax shall be collected at 5% (TCS) on remittances exceeding Rs. 7 lakhs during the financial year. Refund/credit of the same can be obtained while filing Return of Income.
