Remittance facilities for Resident Individuals under the Liberalised Remittance (LRS) Scheme

Any Resident Individual, including a minor is allowed to remit up to USD 250,000 every financial year (April to March) for permitted Capital or Current account transaction or a combination of both under the LRS. The Scheme is not available to Corporates, Partnership Firms, HUFs, Trusts, etc.

Remittances under the LRS can be consolidated in respect of family members provided they are co-owners or joint account holders.

It should be noted that all such transactions which are otherwise not permitted under FEMA are not allowed under the LRS.

The permissible capital account transactions by an individual under LRS are:

  • Opening foreign currency account abroad with a Bank
  • Purchase of property abroad
  • Making investments abroad in shares (listed or unlisted) or debt instruments, units of Mutual Funds, Venture Capital Funds, unrated debt securities, promissory notes
  • Sitting up wholly owned subsidiaries or joint ventures outside India for bonafide business subject to certain conditions
  • Extending loans, including loans in Indian Rupees to NRIs who are relatives as defined in the Companies Act, 2013. Hence loans to non relatives or relatives who are not NRIs is not allowed under LRS.

Our service offering in this segment includes advising on provisions relating to remittances under LRS, assisting in compliances connected to remittances and liaison with AD Banks for the same.