As a resident Indian, you may want to remit money abroad to children for their education expenses or you may want to remit money for maintenance of a close relative abroad. You may need foreign exchange for a private or a business trip or medical treatment abroad. What do you do?
Well, you can purchase foreign exchange from an Authorized Dealer banks, money changers, entities such as Thomas Cook and Cox & Kings and select NBFCs. Reserve Bank has eased the rules for purchase of foreign exchange by residents for permissible transactions. You do not require approval from the Reserve Bank for purchasing foreign exchange up to a certain limit.
You can use Liberalised Remittance Scheme (LRS) for purchasing or remitting foreign currency up to USD 250,000 for permissible transactions.
What is Liberalised Remittance Scheme (LRS)? What are the permitted transactions under LRS? What are the documents required to make remittance or purchase foreign currency? How do I make the payment? What if I need to remit more in specific cases? In this post, I will try to answer these questions.
Liberalised Remittance Scheme (LRS)
Under LRS, residents are allowed to remit up to USD 250,000 per financial year for permissible capital and current account transactions (or a combination of both). Only resident individuals (including minors) are permitted to remit funds abroad under LRS. In case of minors, the LRS declaration form shall be countersigned by the guardian.
For remittances under LRS, approval from the Reserve Bank is not required.
Non-residents cannot remit funds abroad under LRS.
It is not that Non-residents cannot remit funds abroad. It is just that they cannot remit under Liberalised Remittance Scheme (LRS).
Read: Remittance Facilities for NRIs
There is no restriction on frequency of transactions under LRS. However, the total amount of foreign exchange purchased or remitted should not exceed USD 250,000 or its equivalent in the financial year.
Current Account Transactions permitted under LRS
- Private Visits to any country (except Bhutan and Nepal)
- Gifts or donation
- Going abroad for employment
- Emigration
- Maintenance of close relatives abroad. Relative as per Section 6 of the Companies Act
- Business Trip
- Medical Treatment abroad
- Education abroad
- Any other permissible current account transaction as per FEMA.
Capital Account Transactions permitted under LRS
- Opening a foreign currency bank account abroad
- Transferring money to own foreign currency accounts abroad
- Purchasing property abroad
- Making investments abroad
- Purchasing object of Art subject to provisions of extant Foreign Trade Policy
- Loans and gifts in Indian Rupees to NRI/PIO close relatives
- Repayment of a loan abroad availed while you were a non-resident
Points to Note for LRS
Banks are not permitted to offer any kind of credit facilities to facilitate Capital Account remittances under LRS.
For capital account remittances, you must have maintained the bank account with the bank for at least one year before making such remittance. There is no such restriction for current account remittances.
You need to designate a branch of the Authorized dealer through which all the remittances under the Scheme will be made.
Please understand the limit of USD 250,000 is the overall cap for remittance/purchase of foreign currency for all current and capital account transactions listed above. For instance, if you remit/draw USD 100,000 for making investment abroad, the limit under LRS would be reduced by USD 100,000 for the financial year i.e. you can remit only up to USD 150,000 more(in the same financial year) for any permitted transaction.
If you breach the limit of USD 250,000 for the financial year, you will need approval from the Reserve Bank for further purchase of foreign exchange/remittances.
There is an exception to the rule in case of medical treatment, overseas education and emigration. In these cases, you can still remit more than USD 250,000 without approval from RBI if you produce certain documents. If the Authorized Dealer is satisfied with the documents, it can let you remit more than USD 250,000 without approval from RBI. Case of medical treatment and overseas education is discussed later in the post.
Even drawal of foreign exchange (currency notes) for purposes mentioned above is subsumed under LRS. Hence, if you draw USD 4,000 for a private visit, the limit under LRS goes reduced by USD 4,000 for the financial year.
Medical Treatment Abroad
This limit for this head is also subsumed under LRS.
You can remit up to USD 250,000 or its equivalent without any estimate from the doctor.
If the amount exceeds USD 250,000, you need to furnish cost estimate from a doctor or hospital in India or abroad. RBI approval is not required in this case. However, Authorized dealer bank must be satisfied with the documents presented.
So, remittance restrictions won’t hamper the quality of medical treatment you can afford abroad.
The person who is accompanying the patient as an attendant is also allowed to remit up to USD 250,000 per financial year.
Students going abroad
The remittance under this head is also subsumed under LRS.
Like with medical treatment, you do not need to provide any estimate for remitting up to USD 250,000 per financial year. However, Authorized dealer (bank or institution) may allow remittance exceeding USD 250,000 based on cost estimate from foreign university. RBI approval is not required in such case.
Point to Note: As per FEMA, students are considered NRIs from the day one (of moving abroad for studies). Hence, they can make use of all the remittance facilities available to NRI. They can remit up to USD 1 million from their NRO accounts per financial year.
Loan/Gift to NRI/PIO close relative under LRS
As a resident, you are allowed to offer Rupee loans to NRI/PIO close relatives subject to certain conditions.
- The loan should be free of interest and the minimum tenor should be 1 year.
- The loan amount shall be credited to NRO account of the NRI/PIO close relative.
- The loan amount shall not be remitted outside India.
- The loan amount shall be utilized for borrower’s personal requirements or business in India.
- The loan amount cannot be invested in chit funds, Nidhi Company, agricultural or plantations activities, real estate business (with exceptions) or used for construction of farm houses or trading in TDRs.
- Repayment of the loan shall be made through inward remittances or through debit to NRO, NRE or FCNR accounts or out of sale of security against which such loan was granted.
Please note the rupee loan amount shall be considered under LRS and your LRS limit for the financial year will go down by the loan amount. Therefore, the cap of USD 250,000 per financial year under LRS applies to such loans too.
Close relative is Relative as per Section 6 of the Companies Act. Relative includes parents, grandparents, siblings and their spouses, children and their spouses and grandchildren and their spouses.
Gift in Indian Rupees or Foreign Currency to non-resident close relatives is also subsumed under LRS.
Do note you (resident Indian) cannot gift, in Foreign Currency, to another resident for crediting the latter’s foreign currency account opened under LRS.
What you cannot do under LRS?
You cannot remit money under LRS for purposes:
- Prohibited under Schedule I (remittance out of lottery winnings, income from racing/riding, or for purchase of lottery tickets etc.) of FEM (Current Account Transaction Rules), 2000.
- Restricted under Schedule III (cultural tours, advertisement in foreign print media etc) of FEM (Current Account Transaction Rules), 2000.
- Capital Account Remittances to countries identified by Financial Action Task Force (FATF) as non-cooperative countries and territories.
- Remittance for margin/margin calls to overseas exchange/overseas counterparty
- Remittance for purchase of Foreign Currency Convertible Bonds (FCCBs) issued by Indian companies in the overseas secondary market
- Remittance for trading in foreign exchange abroad
- Remittances to individuals and entities identified by RBI as posing significant risk of terrorist activities
Income Tax Act and FEMA
Your remittances to non-residents abroad will be governed by FEMA (Foreign Exchange Management Act). Additionally, the authorized dealer banks need to ensure that your remittance is in compliance with the Income Tax laws i.e. tax has been duly paid on the funds being remitted and TDS, if any has been deducted.
RBI does not issue any instructions under FEMA about the procedure to follow to ensure income tax compliance. As per Rule 37BB of the Income Tax Act, you may have to furnish a declaration under Form 15 CA and a CA certificate under Form 15 CB. CA certificate is to ensure that appropriate TDS has been deducted for the proposed payment/remittance.
Book: In the Wonderland of Investments for NRIs by A.N.Shanbhag/Sandeep Shanbhag
Documents required to remit money abroad
For remittances abroad, you might be required to furnish information in the four forms:
- Form A2 (Required as per FEMA)
- Application cum Declaration for purchase of foreign exchange under LRS (Required as per FEMA)
- Form 15 CA (Required as per Income Tax Act)
- Form 15 CB (Required as per Income Tax Act)
Submission of Form 15 CA and Form 15 CB is not required in certain cases (as specified in Rule 37BB).
As I understand, rule 37BB exempts submission of Form 15CA or Form 15CB for current account transactions under LRS. This becomes applicable from April 1, 2016.
It is mandatory to furnish Permanent Account Number (PAN) to make remittance under LRS.
There is an exception.
For remittances up to USD 25,000 for all permissible current account transactions, you only need to provide a simple letter to the bank containing your name and address (and of the beneficiary) and the purpose of remittance. However, for such cases, the payment for purchase of foreign exchange shall be made through direct debit to your bank account or through a cheque or a demand draft. For remittances under USD 25,000, the Authorized dealer may not insist on PAN.
For higher sums, you need to furnish Form A2 and Application cum Declaration under LRS and Form 15 CA and 15CB, if applicable.
The documents may vary based on the purpose of remittance. Please refer to the document list required for remittances for various purposes on ICICI Bank website.
Do note, in reality, Authorized Dealers may even insist on extra documents (say Form 15 CA and 15 CB for current account transactions) to be on the safer side.
What role do Authorized Dealers play?
Authorized dealers are persons/entities that have been authorized by the Reserve Bank to deal in foreign exchange. Almost all prominent banks figure in the list.
Remittances under LRS do not require RBI approval. RBI has delegated the power to Authorized dealers. Authorized dealer (banks or entities such as Thomas Cook) has to satisfy itself that the remittance/drawal of foreign currency is not in contravention of FEMA or Income Tax Act.
For compliance with FEMA, it may rely on Form A2 and declaration under LRS.
For compliance with Income Tax Act, it will rely on Form 15 CA and Form 15 CB, if required.
Apart from this, it must also follow KYC guidelines and anti-money laundering rules before effecting the remittance.
How do I pay for purchase of foreign currency?
The Authorized Dealer has to ensure that the payment for purchase of foreign exchange is being made out of funds belonging to the remitter.
Therefore, payment for purchase of foreign exchange must be made by cheque/demand draft/ debit card/ credit card/pay order/net banking.
There is a minor exception.
You can make cash payment for amount not exceeding Rs 50,000 for purchase of foreign currency for travel abroad (for private visit or any other purpose).
Returning NRIs
Once you have returned to India permanently, restrictions that apply to residents will apply to you too. So, you can also make use of Liberalised Remittance Scheme for purchase of foreign exchange.
If you are returning to India permanently, you can keep your money repatriable by transferring money in FCNR and NRE deposits/accounts to RFC account. Money in RFC account remains fully repatriable and you can use it for remittances abroad. Remittances from RFC accounts are not considered under LRS. Hence, you can easily remit as much as you want.
Read: Returning NRIs: What happens to your bank accounts?
How do I send money abroad?
I had read an excellent article in LiveMint titled Best routes to send Money abroad. It covers the various ways to send money abroad. Recommend you to go through this Mint article.
Disclaimer: This is a very simplistic representation of FEMA and the Income Tax Act. You must not base your decisions solely on the information provided in this post.
Additional Read:
RBI Master Circular for Miscellaneous Remittances from India: Facilities for Residents
FEMA Current Account Transaction Rules, 2000
FEM (Current Account Transactions), Amendment Rules, 2015
FAQs on Liberalised Remittance Scheme on RBI Website
Book: In the Wonderland of Investments for NRIs by A.N.Shanbhag/Sandeep Shanbhag
Your comments are vital to the health of the blog. Do share your experience/inputs in the comments section.
Image Credit: eFile989, 2014. The original image and information about usage rights can be downloaded from Flickr/eFile
78 thoughts on “Liberalised Remittance Scheme and Sending funds abroad”
Very nice and elaborate article. Its always a complex issue when an resident or NRI returnee wants to remit money abroad. I believe this article has helped me to understand the procedure clearly. Thanks a lot Deepesh for this valuable article.
Thanks Nandan. Good to know that you found the post useful.
Got some clarity with your statement quote “As a resident Indian, you may want to remit money abroad to children for their education expenses or you may want to remit money for maintenance of a close relative abroad” Unquote. However, will appreciate if you can further clarify the following: 1.My son is studying in USA, whether as a parent should I remit USD to him under LRS or Non-LRS for i) Fees directly to University and for ii) Maintenance (close relative -son)? My bank ICICI been remitting under Non-LRS?. is there any issue or requirement if it is remitted under Non-LRS? Whether a parent can use either Non-LRS or LRS for remitting for son’s education Fee and maintenance?
Have they given any reason why you can’t do it under LRS?
Which documents do they ask you to submit for remittance?
As I see, such remittances (for fee and maintenance) are permitted under LRS. Hence, ICICI bank should permit such transactions under LRS.
I am not an expert in FEMA but I don’t see any issues even if you remit under non-LRS.
Thanks for the reply Mr. Raghaw. First time I had to submit copy of the passport/VISA/I-20 and of-course bank details of the University / son which he opened after reaching there. They said LRS is for education of self. ie if my son is to remit from his account it could be LRS. So, with your informative article it is evident I can use LRS. Thanks once again.
Many regulations are subject to interpretation. I revisited Master regulations after reading your response. And the regulation can be interpreted in that way (LRS only for self education). However, in Schedule III, there is mention of any current account transaction under LRS. In my opinion, sending college fee for children’s education will qualify as current account transaction under LRS.
To be honest, these are operational aspects. The bank might be in the better know of things.
As soon as your son moves abroad for education, he cannot use LRS as he is NRI under FEMA. However, he can remit up to USD 1 million from his NRO account every year. But yes, he can use LRS before he moves abroad for studies for the first time.
Hi,
According to the latest Fed master plan no 7&8 dated Jan 2016, they say that under the LRS funds can be used for emigration upto $250,000 in one financial year for one individual. Teheran as the FED master plan no 6 dated July 2015 states that the funds transferred under LRS can not be used for emigration purposes.
So now with the latest RBI rule in master plan 7&8 can we use these funds for emigration purposes ? Could you help in clarifying?
Dear Ashish,
As I understand, you are referring to Master direction 7 and 8 dated January 1, 2016 and Master circular no. 6 on dated July 2015.
Actually, Master direction 7 is about LRS.
As I see, remittance for emigration is permitted under LRS under both.
or did I miss something?
Although it is mentioned in Master Direction of 2016, i think there is still some restriction under LRS for immigration
Dear Mr. Deepesh ji,
A person going abroad indulges in shopping for clothes and personal items and pays it through his credit card. When he gets the CC bill, he pays it through INR. Should we include these expenses in LRS limits.
thanking you for your clarification.
KVS Krishnan
Dear Mr. Krishnan,
LRS ceiling of USD 250,000 does not apply to credit cards while you are on a trip abroad. However, credit card limit set by banks will apply.
As I understand, such expenses on credit cards are outside LRS and thus will not be included in LRS limits.
Please understand I am not an expert on FEMA regulations.
Thank You.
Can I purchase a lump sum investment product from an offshore provider by using the capital account?
A resident can make investments abroad under LRS.
Thanks Deepesh
If I send the permitted 2,50,000USD to my US bank account, do I have to pay the tax again in US by declaring it as an income ?
As the money in NRO account is already taxed, how do I avoid the double taxation in US ?
Please talk to an expert in US tax laws.
You pay tax on income. In this case, you are merely transferring asset from India to US.
Interest on NRO account (and not the entire NRO balance) will be subject to tax in US. You can take benefit under DTAA.
VERY GOOD ILLUSTRATIVE ARTICLE
You are welcome. Please do share on your social media pages.
Hi, I have a friend who lives in Dubai and advises me on stocks. He wants his fee. Can I pay him using LRS? Also, does he need to be registered with SEBI as he is not living in India, but advising Indian clients?
Dear Rakesh,
As I understand, with SEBI guidelines, registration is not required if you are advising only NRI clients. With you, it is the other way round.
Also, Do I have to deduct TDS? He does not have a PAN. He doesn’t live in India at all.
Dear Rakesh,
Please contact a good Chartered Accountant for better clarity.
Hello Deepesh,
Thanks for a very informative article. Under LRS can my father-in-law who is resident of India give gift of USD 70000 to her daugher (i.e. my wife) who is NRI (US citizen living in US). Will bank ask for For 15CA/15CB?
Can this money be wire transferred to US bank account or it has to go to NRO account in India first and then transfer to NRE and then repatriate to US from NRE account?
SIR,
THERE ARE TWO WAYS FOR TRANSFERRING THIS FUNDS OUTSIDE INIDA.
FIRSTLY, EITHER YOUR FATHER-IN-LAW SHOULD GIFT THE AMOUNT TO HIS DAUGHTER / (YOUR WIFE), IN INDIA THROUGH PROPER DOCUMENTATION. AFTER ACCUMULATING THE FUNDS IN HER NRO ACCOUNT, SHE WILL THEN NEED TO FILE FORM 15CA AND 15CB WITH HER BANK IN INDIA,(ALONGWITH PROOF OF SOURCE OF BALANCE) FOR TRANSFER OF FUNDS ABROAD.
SECONDLY, YOUR FATHER-IN-LAW MAY DIRECTLY MAKE A GIFT BY CREDITING HER DAUGHTER’S BANK ACCOUNT OUTSIDE INDIA, IN WHICH CASE, FORM 15CA AND 15CB NEED TO BE FILED BY YOUR FATHER IN LAW.
FOR ANY FURTHER RESPONSE, PLEASE DO COMMUNICATE ON pratikparakh@yahoo.com
Hi Sir, Is LRS Scheme applicable for transferring NRO FD amount to NRE Account incase of NRI who holds PAN in INDIA ? The Interest amount is Rs. 4 Lakhs and TDS @ 10% is being deducted on the same? Also Form 15CA & CB is required to be filed ?
Dear Ruchika,
LRS is for residents. If you hold NRO/NRE accounts, you are already a NRI.
From NRO account, you can repatriate up to USD 1 million per financial year.
Hello ,
As a resident one cannot remit money under LRS for trading forex or margin trading abroad. If one still wants to trade derivatives aborad , what one has to do ?
1. Do i have to approach to the RBI to remit money for margin trading and seek a special approval ?
2. If it it not possible for individual residents to margin trade aborad, is it permitted for companies to do it ? which means can i set up a company abroad and the company does the trading ?
Dear Raviraj,
I do not have much idea about this. Suggest you contact a FEMA expert/lawyer.
HI. I also have the same query. Did you get any answer to your question? It will be really helpful if you can share the same.
Dear Pavithra,
I don’t have an answer to your query. Please consult a FEMA expert/lawyer.
I want to hire an employee in USA,I am confused on how much I can pay him and is there any restriction on payment and are there any tax burden on this,I am doing business in a chemical industry sector.
Hi Sairithesh,
I am not the right person to answer these questions.
Half-baked advice can lead to trouble.
Advise you consult a good Chartered Accountant.
I wish to buy a property abroad. How do I remit the money abroad? Do I open a bank account? How can I open a bank account abroad?
Also the limit is US$250,000 per ear per person. Can I club this with my brother/sister/son/daughter’s quota and buy the house in my name? For example, if the property is worth US$750,000, can I remit US$250,000 in my name, US$250,000 in my sons name and US$250,000 in my brothers name and buy a house for US$750,000 in my name? Please clarify. Thank you!
Hi Raghaw,
Wanted to know whether Resident Indian can transfer to NRI (Blood relative) his 3% shares in the company having market value close to Rs.15Cr by way of gift due to family settlement? As it breaches LRS cap, can we approach RBI to allow such transfer/gift made to NRI relative?
Hi Jyot,
There is no issue in approaching RBI for any clarity.
I am not sure if you are transferring shares or the amount. As I understand, Transfer of shares shouldn’t come under LRS.
Suggest you talk to a good Chartered Accountant or a FEMA lawyer.
Thanks !!
My simple question is:-
I want to send foreign exchange as gift to my son, daughter-in-law, grand children on their birthdays, festival occasions like Diwali/ Christmas/ New Year.
What is the limit for remittance individually i.e on birthdays and collectively on festival occasions. Pl advise amount limit and procedure.
Thanks & regards,
Roshan lal
Dear Sir,
Limit is on remittance by you (not on the recipient). You can remit up to 250,000 USD per year (in total).
About the procedure, I have provided a few details in the post.
For greater clarity about the procedure (my knowledge is limited), suggest you talk to a Chartered Accountant.
Waiting for advise.
Can one resident person can give unsecured loan to non resident who is not relative of such resident person? Pls give me guidance if u have…
From Alpesh jadav
Deepesh Sir, I had a query in relation to LRS that will benefit from your insight. My brother is planning to pursue the Tier 1 Investor Visa pathway to immigrate to the UK. As per the article, you mention that certain exceptions are permissible when it comes to transferring funds above the LRS limit of $250k, and this includes emigration, “if it is so required by the country of emigration”. The UK Tier 1 Investor Visa requires funds of £2mln to be transferred to a UK bank account and invested in qualifying investments. Can you please throw some light on this specific scenario — is it possible to transfer £2mln in one go, is there any additional paperwork to be filed with the RBI, anything else my brother should be aware of etc.? Thanks in advance for your reply.
Waiting for a response, Deepesh sir
Hi John,
Should be allowed but don’t have much idea about operational details.
Please check the operational details with the AD bank.
Sir,
Very good and helpful article. My child is about to finish her study in US. During on job training for 1 year I would like to provide her maintenance support. Is it allowed? If allowed let me know whether it comes under non LRS or LRS.
Regards,
Deb
In my opinion, LRS
sir
my son has been studying abroad so as per FEMA he is a NRI, does he have to open an NRO/NRI account , it it mandatory ,
and if he has a property worth 1CR can he sell that and send the money to his own acct ?
thamks
Dear Rajeev,
It is not mandatory to own an NRI/NRO account.
However, the proceeds from sale of property have to come to an NRO account.
Your son can repatriate up to USD 1 million from NRO account per year.
Suggest you also talk to a good CA in this regard.
Hi Deepesh,
I have been living in USA since 2008. I sent a quite a bit of money to my parents and my brother all along. I am thinking of bringing some of that amount to USA. It would be about `100 thousand USD. There is no tax for me in USA as long the money that I receive from my parents as a gift. My parents are farmers and they do not file any taxes in India at this moment, what kind of hurdles they may have sending money back to me from India? what is the best way to do?
Hi Rao,
Suggest you talk to a CA.
If your parents have to remit, they can remit under LRS.
Or you can accept gift in India and get it credited to your NRO account and then send abroad.
Hi, I have a Proprietary concern in India. I have a sole proprietary company in West Africa too with the same name. I have a current account as well in Africa. For office furnishings in Africa can I send few thousand dollars from my Indian SB or Current account through LRS scheme? What docs will be sufficient to satisfy the AD/ bank I’m India.
Thanks to revert soon.
Hi Krishna,
For the documentation required, please contact the AD bank.
Hi,
My sister resides in Norway and I have to remit Money to her to support her property purchase in Norway from India. Can I transfer fund to her Norwegian account using LRS ?
I do not see any regulatory problems. You can gift money to your sister.
Bank will guide you better about operational details.
Dear Sir, I have similar query, I am a resident Indian, my Brother in UK wants to buy an apartment , can I fund a partial amount to my Brother say around 60k $ (40-50 lakhs INR) by taking either personal or loan against property in India. Loan will be in my name only. Can this amount be treated as Gift to my Brother under LRS scheme so he will not be taxed.
Can a person remittance funds under LRS to his brother in law ? Is it permissible ?
Can a person do* remittance under LRS to his brother in law in UK ?
I don’t see any issue.
Do anyone have a copy of FAQs issued by RBI dated 17 September 2010?
It would be great if you can share the same.
Is it possible to buy global medical insurance from a global insurer with LRS money?
Hi Niharika,
In my opinion, this can be done.
Please refer to the following RBI circular dated November 17, 2016.
https://www.rbi.org.in/scripts/BS_CircularIndexDisplay.aspx?Id=10717
Refer to Clause 3(i).
I copy an excerpt from the circular.
A person resident in India may take or continue to hold a health insurance policy issued by an insurer outside India provided aggregate remittance including amount of premium does not exceed the limits prescribed by RBI under the Liberalised Remittance Scheme (LRS) from time to time.
NRI (Mr A) gives Gift to Resident Indian (Ms B – Sister of A). Then Ms B transfers the money (under LRS) to foreign country as “Family maintenance” to Ms C (Ms C also NRI and wife of Mr A).
What are the possible tax/penalty implications, if any ? Please advise.
Why can’t A send directly to his wife?
Hi
Thanks for reply. It is indeed very quick. I appreciate it.
There was shortage of time and hence Mr A had to transfer asap. Mr A being NRI had to start the formalities of form 3CA/3CB/Digital Signature etc and would have taken time hence this transaction.
The transaction had already taken place hence the query on the possible tax/penalty implications, if any ?
Thank you.
Great!!!
Frankly, I do not see any penalty or tax provisions.
A’s wife (C) is a close relative of B, both as per FEMA and income tax act.
Please understand my knowledge of FEMA and the Income Tax Act is quite limited.
Please consult a Chartered Accountant before taking any action.
Thank you very much.
Hi Deepesh,
i have a query on LRS
resident Mother wants to gift 10 lacs $ to her NRI Daughter ( 4 times more appx from 2.5 lacs limit)
RBI guidelines says in that case one will have to take the permission from RBI.
Kindly guide
in case you can take it up .. do share me ur no. will call u.
Regards
Dear Vikas,
I am not the right person to assist in this matter.
Please contact a competent Chartered Accountant or a FEMA expert.
Very good informative article. I had a query regarding sending money abroad to fund education of child. I am a US citizen with OCI card living as resident in India since 2002. I want to send money abroad to fund college education for my child studying in USA. Is my understanding correct that proceeds from sale of residential property or mutual funds can be considered as source of fund (of course with right tax paid for capital gains) when sending money abroad under LRS? Thanks
Yes, I don’t see any issue with that.
Dear Deepesh Raghaw Ji,
I would like to know whether we can send Money abroad to a friend as a gift who is a foreign citizen?
Up to 3 years ago I had ever sent money 12 times by SWIFT wire transfer(Never more than 600 USD) through SBI bank but just now yesterday I went to the SBI bank where my account is maintained for more than 15 years and they said that I can not send any money to a foreign Citizen friend as a gift, there’s no Circular released by the RBI for such Purposes and the Past transaction I had ever done must be done for the Wrong Purpose and it must not be allowed, I suppose that this New staff are not aware of it that on what Purposes or guidelines such Transaction can be made? Old staff was very experienced and talented.
Please let me know on what schemes or RBI guidelines such transaction can be made?
Thanks!
HelloDeepesh.. Can we remit under lrs to friends daugher for medical treatment abroad..?
Hi Nishant,
In my opinion, yes.
Hi I have gifted Rs to my daughter under LRS in UK. which She wanted to invest in Property.
But due to the reason unforeseen that deal didnt materialize.
Now she wants to return that money back as its big amount. (From UK to India)
Is it Ok to take the return of the money which is gifted to my daughter under LRS.
Thanks !
Hi, A very well written article . I as a resident have opened an overseas bank account in SIngapore with USD 5000 and subsequently transferred USD 100000 under LRS. Now can I open a Bank account in USA ( being a green card holder) by transferring from my LRS Singapore Account whilst my status in India is that of a resident. Or should i opena US account by fresh transfer under LRS.
Hi Sanjay,
You don’t require RBI permission to transfer monies from your Singapore account to US account.
Nice to read good article. It will be helpful if you could clarify on how to go about on return of forex loan taken by a Indian resident from his NRI daughter ( received by transfer of equivalent INR from daughter’s NRE account).
I am studying abroad. Can my friend in India loan me money for studies. What is the paperwork for this