What is Liberalized Remittance Scheme (LRS)
The Liberalized Remittance Scheme (LRS) is a facility provided by the RBI for all resident individuals including minors to freely remit upto a certain amount in terms of US Dollar for current and capital account purposes or a combination of both.
— Liberalized Remittance Scheme. (LRS) established by the Reserve Bank of India on February 4th, 2004 to permit citizens of India to transfer funds abroad for permitted current or capital account transactions or for both.
— the Liberalized Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April — March) for any permissible current or capital account transaction or a combination of both.
— As per section 56(2) of income tax act, any sum received by an individual in excess of Rs. 50, 000 in a financial year without consideration will be taxable in the hands of the recipient under the head “income from other sources” as gift.
— are allowed to repatriate or bring their sale proceeds of property sold in India to the US. However, the limit to the amount brought from India is $1 million per calendar year, including all other capital account transactions.
Originally published at https://hedgingstrategiesbyvinaybhandari.blogspot.com.
