Banking
India — Banking: International Transfers
Outward remittances by resident individuals are governed by the Liberalised Remittance Scheme (LRS), capped at USD 250,000 per financial year (April-March) across all authorized dealer banks and platforms combined; amounts beyond this require prior RBI approval. Inward remittances are governed separately under FEMA/RBI guidelines rather than LRS. Tax Collected at Source (TCS) applies to LRS remittances exceeding ₹10 lakh in a financial year: 2% for self-funded education/medical treatment abroad or overseas tour packages, and 20% for most other purposes — no TCS applies below the ₹10 lakh threshold.
VerifiedGovernment / official sourceReserve Bank of India — Liberalised Remittance Scheme (LRS) / FEMALast reviewed: 2026-07-20
Key facts
- LRS outward remittance cap: USD 250,000 per financial year (April-March), aggregated across all banks/platforms.
- Remittances beyond the USD 250,000 LRS cap require prior RBI approval.
- TCS applies above ₹10 lakh in LRS remittances per year: 2% for education/medical/tour packages, 20% for most other purposes.
- Inward remittances are governed by FEMA/RBI rules, not the LRS (which applies only to outward transfers by residents).
Required documents
- Purpose declaration (Form A2)
- PAN
- Supporting documents for the stated purpose (education, medical, investment, etc.)
Common mistakes
- Assuming the LRS cap applies to NRIs receiving money in India — LRS governs outward remittances by residents, not inward transfers.
- Not accounting for the 20% TCS on general-purpose remittances above ₹10 lakh, which is a steep default rate compared to the 2% rate for education/medical/tour purposes.