LRS Limits Explained: How Much Money Can You Remit Abroad?
The Liberalised Remittance Scheme, or LRS, is the RBI framework that governs how much money a resident individual can send outside India in a financial year, and it applies to nearly every personal outward remittance — from education fees to gifts to overseas investments.
The annual limit
Under LRS, a resident individual can remit up to USD 250,000 per financial year for permitted current and capital account transactions. This limit is per person, so family members each have their own separate allowance.
What counts toward the limit
Education expenses, medical treatment, travel, gifts, maintenance of relatives abroad, and overseas investments in shares or property all draw from the same annual LRS limit, even though they may be sent through different transactions across the year.
Tax collected at source (TCS)
Remittances under LRS above certain thresholds attract TCS, with the applicable rate depending on the purpose of the transfer — education loans, medical treatment, and other purposes each have different thresholds and rates. This is collected upfront and can be claimed back as a credit while filing your income tax return.
Plan ahead for large transfers
If you know you will need to send a large amount abroad in a given year — for tuition or a property purchase, for example — it is worth mapping out the transfers in advance so you do not unexpectedly approach the annual limit partway through.