International Tax
LRS (Liberalised Remittance Scheme)
RBI scheme allowing resident individuals to remit up to USD 250,000 per year abroad for permitted purposes.
Full Definition
The Liberalised Remittance Scheme (LRS) allows all resident individuals to remit up to USD 250,000 per financial year abroad for permitted purposes including: private visits, education, medical treatment, maintenance of close relatives abroad, and investment in foreign securities/property. TCS (Tax Collected at Source) applies on LRS remittances: 20% on amounts above ₹7 lakh per year (0.5% for education/medical with specified conditions). TCS can be claimed as credit in ITR.
More International Tax terms
NRI (Non-Resident Indian)
An Indian citizen residing outside India for more than 182 days in a financial year.
RNOR (Resident But Not Ordinarily Resident)
A transitional residency status for individuals who have recently returned to India after being NRIs.
DTAA (Double Taxation Avoidance Agreement)
Bilateral treaty between India and another country preventing the same income from being taxed twice.
FEMA (Foreign Exchange Management Act)
Indian law governing foreign exchange transactions, cross-border investments and NRI account operations.
NRE Account (Non-Resident External)
Bank account in India for NRIs holding foreign earnings converted to INR — interest is tax-free.