Under the Liberalised Remittance Scheme, a resident individual can remit up to USD 250,000 in a financial year for permitted current and capital account purposes, such as education, travel, medical treatment, gifts and investment abroad.
Banks collect tax at source (TCS) on remittances under LRS above ₹10 lakh in a financial year, with the rate depending on the purpose. TCS is not a final tax: it appears in Form 26AS and can be claimed as a credit in the income tax return.
Key points
- Limit: USD 250,000 per person per financial year
- TCS applies above ₹10 lakh in the year, rates vary by purpose
- Claim TCS as credit in your income tax return
- Overseas investments must follow the ODI rules
- Keep bank documents for each remittance
General information only, not professional advice. Section references are to the Income-tax Act, 1961; corresponding provisions of the Income-tax Act, 2025 apply from 1 April 2026. Thresholds and dates may change by notification.
CA Rahul Rajendra MohiteACA, M.Com · ICAI Membership No. 622387 · Founder, Rahul R. Mohite & Co., PuneFirm profile and key facts