The Liberalised Remittance Scheme, explained
What is LRS?
The Liberalised Remittance Scheme is the RBI framework that lets resident individuals remit up to USD 250,000 per financial year abroad for permitted purposes, as per current regulations. Every remittance goes through an Authorised Dealer — like Quick Forex (RBI AD Category-II) — which verifies KYC, purpose and documentation before funds move.
Common LRS purposes
Tuition fees, living expenses, GIC (Canada), Blocked Account (Germany). Lower TCS when funded by an education loan.
Hospital invoices and estimates accepted; higher documentation but priority processing.
Regular support to close relatives abroad under the FEMA definition of "relative".
Private visits, employment abroad, emigration, gifts, and overseas investments.
TCS in one minute
Tax Collected at Source applies to LRS remittances above the prevailing aggregate threshold per financial year. Education via loan attracts a concessional rate; other purposes attract higher slabs, as per current Income-tax rules. TCS is not a fee — it appears in your Form 26AS and adjusts against your tax liability. Our TCS & GST calculator shows the exact figure before you commit, and every Quick Forex quote itemises rate, GST and TCS separately.
FAQs
Under the Liberalised Remittance Scheme, resident individuals may remit up to USD 250,000 per financial year (April–March) for permitted current and capital account transactions, as per current RBI regulations. The limit is per person, so family members each have their own limit.
Permitted purposes include education (tuition and living expenses), family maintenance, medical treatment, overseas travel, gifts and donations, investments in shares or property, and maintenance of relatives abroad. Every remittance is tagged with an RBI purpose code.
Yes, Tax Collected at Source applies above the prevailing threshold (₹7 lakh aggregate per financial year for most purposes, as per current rules). Education funded by a loan attracts a lower rate; other purposes attract higher rates. TCS is not an extra cost — it is adjustable against your income-tax liability or refundable when you file your return.
PAN is mandatory. Depending on the purpose you will also need identity/address proof and purpose-specific documents — e.g. a university offer letter or fee invoice for education, medical estimates for treatment, or a relationship proof for family maintenance. Quick Forex shows you the exact checklist for your purpose code before you start.
No. LRS is only for resident individuals as defined under FEMA. NRIs remit through their NRE/NRO accounts under separate regulations.
Live rate, purpose-code guidance and a document checklist before you pay a rupee.
This guide is educational, not tax or legal advice. Limits, thresholds and TCS rates are as per regulations prevailing on the date of publication and may change; the figures applied to your transaction are always computed live at quote time.