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Service Details

Liberalised Remittance Scheme (LRS)

Home / Liberalised Remittance Scheme

Navigating the Liberalised Remittance Scheme (LRS)

At Startup Solicitors, we offer specialized advisory services for resident individuals looking to remit funds abroad under the Liberalised Remittance Scheme (LRS). The LRS allows individuals to remit up to USD 250,000 per financial year for various permissible current and capital account transactions. Our experts provide clarity on the scheme's regulations, ensuring your remittances are fully compliant with RBI and Income Tax rules, including the provisions for Tax Collected at Source (TCS).

Whether you are planning for overseas education, investing in foreign stocks, purchasing property abroad, or sending money to relatives, we guide you through the process. We help you understand the permissible uses, documentation requirements (like Form A2), and tax implications to ensure a smooth and hassle-free transaction.

Our LRS Advisory Services

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Permissible Remittances Advisory

Clear guidance on the wide range of transactions permitted under the LRS for both current and capital accounts.

  • Overseas education and medical treatment
  • Investment in foreign equity, debt, and property
  • Gifts or donations to overseas recipients
  • Travel, maintenance of close relatives, and emigration

Clarity: We help you understand the exact scope of permissible transactions to avoid any non-compliance.

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2

TCS on LRS Compliance

Expert advisory on the implications of Tax Collected at Source (TCS) on your foreign remittances.

  • Calculating applicable TCS rates for different purposes
  • Guidance on thresholds and exemptions (e.g., education loans)
  • Assistance in claiming credit for TCS in your tax returns
  • Planning remittances to optimize tax outflow

Advantage: Our tax experts ensure you are fully compliant with TCS rules and help you manage your tax position effectively.

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3

Documentation & Process Management

We assist in preparing and organizing all necessary documentation for your LRS transactions.

  • Assistance in filling out Form A2 and the LRS declaration
  • Guidance on providing the source of funds as required by banks
  • Liaising with your Authorized Dealer (AD) Bank for smooth processing
  • Ensuring all documentation is in order for a seamless remittance

Efficiency: Our process management minimizes back-and-forth with banks and ensures quick transaction execution.

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4

Overseas Investment Structuring

Strategic advice for individuals making overseas direct investments (ODI) using the LRS route.

  • Advisory on setting up a foreign JV/WOS
  • Compliance with ODI reporting requirements post-investment
  • Guidance on combining LRS limits of family members for larger investments
  • Structuring for tax efficiency and future repatriation

Expertise: We bridge the gap between LRS and FEMA's ODI regulations for compliant overseas business ventures.

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5

Prohibited Transactions Advisory

Clear and firm guidance on transactions that are expressly prohibited under the LRS.

  • Remittances for purchasing lottery tickets or banned magazines
  • Trading in foreign exchange or margin calls to overseas exchanges
  • Remittances to certain non-cooperative countries and territories
  • Ensuring your purpose of remittance is not on the prohibited list

Protection: Our advisory protects you from inadvertently engaging in transactions that violate FEMA regulations.

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Why Choose Our LRS Advisory Services?

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Specialized Knowledge

We have a deep and current understanding of LRS regulations, including all recent amendments.

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Tax-Integrated Advice

Our advice integrates both FEMA and Income Tax perspectives, especially concerning TCS.

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Personalized Guidance

We provide one-on-one guidance tailored to your specific remittance needs and financial situation.

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Process Efficiency

We help you streamline the remittance process, making it faster and more efficient.

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Confidential & Trustworthy

Your financial information is handled with the highest degree of confidentiality and integrity.

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Holistic View

We advise on how LRS transactions fit into your overall financial and investment portfolio.

Frequently Asked Questions (FAQs)

LRS India FAQs
1. Is the LRS limit of USD 250,000 per person or per family?
The LRS limit is per individual. This means each member of a family (including minors) can remit up to USD 250,000 in a financial year. Family members can also club their individual limits for certain transactions, subject to conditions.
2. Do I need to file any return with the RBI after an LRS transaction?
For most transactions like education, travel, or medical expenses, no separate reporting is needed by the individual. However, if you make an overseas investment in a JV/WOS, you are required to comply with ODI reporting norms, such as filing the Annual Performance Report (APR).
3. Is Tax Collected at Source (TCS) a final tax?
No, TCS is not a final tax. It is an advance tax collected on your behalf. You can claim credit for the TCS amount against your total income tax liability when you file your income tax return. If you have no tax liability, you may be eligible for a refund.
4. Can I use LRS to send money for cryptocurrency investments?
No. Remittances under LRS cannot be used for any purpose that is prohibited under FEMA or is illegal in India or the destination country. This includes the purchase of cryptocurrencies, as they are not yet recognized as a permissible asset class for this purpose by the RBI.

💸 Remit Funds Globally, The Compliant Way

Make your international transactions for education, investment, or family support with complete confidence. Our LRS advisory services ensure every remittance is smooth, efficient, and fully compliant with all Indian regulations.

Contact Startup Solicitors today for personalized guidance on the Liberalised Remittance Scheme.

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