BENGALURU: Liberalized Remittance Scheme is a new scheme introduced by the Government of India, and there are many advantages attached to it. Then also, there are some rules and regulations as to who can take advantage of this scheme and who can’t. Also there are some rules to the LRS’ remittances. Below are some questions and answers associated with LRS as reported by The Economic Times.

What is LRS?

Liberalized Remittance Scheme or LRS is a window provided by the government of India by which an individual can remit money across the border. The individual need not seek any specific or special approval from the government.

Are there any rules?

Remitting an amount can be done by an individual on a free basis within a specified limit. The transaction can be made every financial year and for a permissible set of current or capital account transactions.

So what is the current limit, and who can avail the scheme?

The government has set the current LRS limit as 250,000 US dollars. Any and all resident individuals, including minors can take advantage of this scheme. Corporate, partnership firms, HUF and trusts although cannot do any transaction following this scheme.

For what are the remittances permitted?

Apart from maintenance of relatives living abroad, gifting and donations, remittances are permitted for overseas education, travel, medical treatment and purchase of shares and property as set by the Government of India.

For what are the remittances not permitted?

For trading on the forex markets, margin to overseas exchanges and counterparties and the purchase of FCCB issued by Indian companies abroad, the Government of India has not permitted remittances.

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