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.