The Foreign Exchange Management Act (FEMA) 1999, which establishes the rules for foreign remittances from India, includes the Liberalised Remittance Scheme (LRS). All residents, including minors, are free to remit up to the LRS scheme limit of USD250,000 per fiscal year (April - March), as permitted by LRS. This is also applicable to any permitted capital account transaction, current account transaction, or both.
Check out the NRI property management service of NoBrokerAfter understanding what is LRS limit for individuals, let us focus on the list of justifications for which you can send money under LRS. Following is a list of a few of these:
Travel and tourism overseas, except Nepal and Bhutan
Employment-related travel
Emigration
Maintenance of close relatives who reside abroad
Costs associated with receiving medical care overseas
Funding international education
Opening a bank account in a foreign currency outside the country
Purchase of a foreign property
Investing internationally in mutual funds, venture capital funds, stock shares, and debt instruments.
All transfers exceeding the limit of Rs. 7 lakhs are subject to 5% tax collected at source (TCS). The TCS deducted, however, can be refunded by filing an income tax return (ITR) using Form 26 AS.
Depending on how long the investment was held, any profit gained on overseas investments made through LRS is taxed in India. A 20% long-term capital gains tax is applied if the investment lasted more than 24 months. Otherwise, profits from these investments are considered regular income and are taxed according to the appropriate tax brackets.
I hope this suffices your query about the LRS scheme limit. I hope this helps:)
Read More:
List of Documents Required for Foreign Remittance from India? Can a foreigner buy property in India? Can a foreigner rent a property?Your Feedback Matters! How was this Answer?
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What is LRS Limit?
Riya
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2023-04-24T08:35:14+00:00 2023-04-24T08:41:05+00:00Comment
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