The Classic Partners LLP
Liberalised Remittance Scheme (LRS)
Under the RBI's Liberalised Remittance Scheme, resident individuals can remit up to USD 250,000 abroad per financial year for education, investment, travel, medical treatment, and more. We plan your remittances and TCS efficiently.
Plan Your RemittanceWhat is the LRS?
The Liberalised Remittance Scheme is an RBI facility allowing every resident individual (including minors) to remit up to USD 250,000 per financial year for permitted current and capital account transactions — overseas education, medical treatment, travel, gifts, maintenance of relatives, investment in foreign shares and property, and opening foreign bank accounts.
LRS applies to residents only. NRIs remit through the NRO/NRE route instead — see repatriation of assets. Your residential status therefore decides which framework governs your transfer.
TCS on LRS Remittances (from 1 April 2026)
Tax Collected at Source applies on LRS remittances above a cumulative threshold of Rs. 10 lakh per financial year. The Finance Act, 2026 reduced rates substantially from 1 April 2026:
- Education and medical treatment — TCS at 2% on the amount above Rs. 10 lakh (reduced from 5%).
- Education funded by a specified institutional loan — nil TCS.
- Overseas tour packages — 2% on each remittance, with no threshold.
- All other purposes, including foreign stocks, property, and crypto platforms — 20% above Rs. 10 lakh.
TCS is not a final tax — it appears in Form 26AS and is fully adjustable or refundable when you file your return. The Rs. 10 lakh threshold is cumulative across all purposes and all banks.
Common LRS Use-Cases We Handle
Overseas Education
Tuition and living-cost remittances structured to minimise upfront TCS.
Foreign Investments
US stocks, ETFs, and overseas property within LRS limits and reporting.
Family Maintenance & Gifts
Remittances to relatives abroad with correct purpose codes.
Medical Treatment
Urgent medical remittances with the concessional 2% TCS rate.
Emigration Funding
Pre-move transfers coordinated with recent immigrant planning.
TCS Recovery
Claiming TCS credit or refund through return filing.
Frequently Asked Questions
What is the LRS limit for 2026?
USD 250,000 per resident individual per financial year (April to March), cumulative across all permitted purposes and all banks.
How much TCS applies on foreign remittances?
No TCS applies up to Rs. 10 lakh of cumulative remittances in a financial year. Above that, from 1 April 2026 the rate is 2% for education and medical purposes, nil for loan-funded education, and 20% for other purposes such as foreign investments; overseas tour packages attract 2% without any threshold.
Is TCS on LRS an extra tax?
No. TCS is a prepaid tax that reflects in Form 26AS and can be adjusted against your income tax liability or claimed as a refund when filing your ITR.
Can NRIs use the Liberalised Remittance Scheme?
No. LRS is available only to resident individuals. NRIs transfer funds abroad through the NRE route or the NRO repatriation route of USD 1 million per year with Form 15CA/15CB.
Can family members combine their LRS limits?
Yes, each resident individual including minors has an independent USD 250,000 limit, so a family can lawfully pool limits for a large purpose such as buying an overseas property, subject to ownership being consistent with the remitters.
Sending money abroad this year?
We'll structure your LRS remittances, minimise TCS, and recover every rupee of credit in your return.
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