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Liberalised Remittance Scheme : Union Budget 2023

Liberalised Remittance Scheme: Union Budget 2023

The Union Budget 2023 proposes a Tax Collection at Source (TCS) for foreign outward remittance under LRS (other than for Education and medical purpose) of 20% on the entire value.

  • Liberalised Remittance Scheme (LRS) allows Indian residents to freely remit up to USD $250,000 per financial year for current or capital account transactions or a combination of both.
  • Any remittance exceeding this limit requires prior permission from the RBI.
  • The scheme was introduced on February 4, 2004
  • Only individual Indian residents, including minors, are permitted to remit funds under LRS.
  • Corporates, partnership firms, HUF, trusts, etc., are excluded from its ambit.
  • There are no restrictions on the frequency of remittances under LRS.
  • Once a remittance is made for an amount up to USD 2,50,000 during the financial year, a resident individual would not be eligible to make any further remittances under this scheme.