LRS · Remittance Abroad · Panaji, Goa
Sending money abroad as a Resident Indian? The Liberalized Remittance Scheme (LRS) allows resident individuals to remit up to USD 250,000 abroad per financial year — but the rules on permitted purposes, TCS deduction and reporting have become more complex. Our Chartered Accountants in Goa ensure your LRS remittances are fully compliant and tax-efficient.
Overview
The Liberalized Remittance Scheme (LRS) was introduced by the Reserve Bank of India to allow resident individuals to freely remit up to USD 250,000 per financial year for a wide range of current and capital account transactions. However, with the introduction of Tax Collected at Source (TCS) on LRS remittances — at 20% on most purposes exceeding ₹7 lakh from FY 2023-24 — the cost of non-planning has increased significantly. TCS is not a final tax (it is creditable against your income tax liability or refundable), but it creates a cash flow impact. Correct LRS documentation, purpose classification and TCS management are all part of smart remittance planning.
This service connects directly with our repatriation of assets from India and Form 15CA and 15CB filing guidance for a complete NRI compliance picture.
What's covered
End-to-end guidance and filing for your specific situation.
Get a fixed-fee quote →Confirming the USD 250,000 annual limit, who qualifies, and how multiple remittances in a year are aggregated.
Advising on LRS-permitted categories: education, medical, travel, investment abroad, gifts to relatives, and maintenance of close relatives.
Explaining TCS rates applicable on each type of LRS remittance and how to claim the TCS as a credit or refund in your ITR.
Ensuring the correct Form A2 (application-cum-declaration) is filed with the bank for each LRS remittance with proper purpose coding.
Identifying transactions not permitted under LRS — such as certain capital account transactions, margin trading and lottery remittances.
Ensuring TCS collected on LRS is fully credited in your income tax return and refunded if your final tax liability is lower.
Our process
We review the purpose, amount and frequency of your planned remittance.
We confirm LRS eligibility and compute the TCS impact on your cash flow.
We assist with Form A2 and any bank-required compliance documentation.
We ensure TCS is correctly credited and refunded in your annual return.
Frequently asked questions
The Liberalized Remittance Scheme (LRS) is an RBI scheme that allows any Resident Individual (including minors) to freely remit up to USD 250,000 per financial year for permitted current and capital account transactions. It covers purposes including overseas education, medical treatment, travel, maintenance of close relatives abroad, investments in foreign equity and debt, and purchase of immovable property abroad. LRS is not available to corporates, partnership firms, HUFs or trusts.
From October 2023 onwards, Tax Collected at Source (TCS) is applicable on LRS remittances at the following rates: 20% on remittances for purposes other than education and medical treatment (including overseas tours, gifts, investments) exceeding ₹7 lakh per year; 5% on education loans remittances; 5% on self-financed education remittances above ₹7 lakh; and 5% on medical remittances above ₹7 lakh. Remittances up to ₹7 lakh per year for non-education/medical purposes are not subject to TCS.
No. TCS is not an additional tax — it is a tax collected in advance and fully creditable against your income tax liability for the year. If your TCS collected exceeds your actual tax liability, the excess is refundable. You claim TCS credit in your income tax return just like TDS. The issue is purely a cash flow one: the TCS is collected upfront by your bank and you get it back (or credited) only when you file your return.
The annual limit is USD 250,000 per resident individual per financial year. All remittances under LRS — across all purposes and all banks — are aggregated towards this limit. If you remit for multiple purposes in a year (travel, education, investment), the total of all remittances cannot exceed USD 250,000. LRS remittances are tracked by the RBI via banks and reported in Form 15CC.
Yes. LRS permits resident individuals to invest in foreign equity, debt instruments, mutual funds and ETFs listed on foreign exchanges. This is one of the most popular uses of LRS — investing in US stocks and global ETFs. The capital gains and dividend income from such investments are taxable in India as per the applicable tax rules, and foreign tax credits are available under DTAA. We advise on the tax reporting for foreign investments made under LRS.
LRS does not permit: remittances for purchase of foreign lottery tickets; remittances for margin calls or margin trading on foreign exchanges; purchase of FCCBs issued by Indian companies abroad; capital account remittances for purposes other than those specifically permitted; and remittances directly or indirectly to countries identified as non-cooperative by FATF. Transactions that bypass these restrictions are LRS violations and attract penalties.
No. LRS is only for Resident Individuals. NRIs who want to repatriate funds abroad use the NRO repatriation route (USD 1 million annual limit for NRO account funds) or the freely repatriable NRE/FCNR route. LRS applies only to individuals who are Resident in India under FEMA and want to send money outside India.
Contact N D Savla & Associates in Panaji, Goa. We review your planned remittance purpose, confirm LRS eligibility, compute TCS impact, assist with Form A2 documentation at your bank, and ensure the TCS collected is correctly credited and refunded in your annual income tax return.
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Book a free consultation with a qualified Chartered Accountant in Goa. We'll ensure your LRS remittance is compliant and your TCS is fully recovered — no obligation.