LRS Limit India 2026 – Liberalised Remittance Scheme Complete Guide
The Liberalised Remittance Scheme (LRS) is the framework under which resident Indians can send money abroad. Introduced by the Reserve Bank of India in 2004 and modified several times since, LRS governs every outward remittance from India — whether for education, travel, maintenance of family abroad, property purchase, or investment. Understanding LRS is essential for anyone sending money out of India in 2026.
💡 Best Rate Recommendation
Send Money with Wise — Save on Every Transfer
Wise uses the real mid-market rate with no hidden fees. Most users save ₹1,500–₹8,000 per transfer vs their bank.
Try Wise Free →
We may earn a commission if you sign up · No extra cost to you
💡 Current LRS Annual Limit: USD 250,000 per individual per financial year (April 1 to March 31). This applies to all resident Indians regardless of income level, occupation, or purpose.
What Is the LRS Annual Limit?
Each resident Indian (individual, not household) can remit up to USD 250,000 or its equivalent in any foreign currency in a single financial year under LRS. The financial year runs from April 1 to March 31. The limit resets every April 1.
Key points about the limit:
- USD 250,000 is the cumulative limit across ALL purposes in a year — not per purpose
- The limit is per individual — a family of four has a combined limit of USD 1,000,000
- Minors can also remit under LRS with their parents acting as guardians
- The limit is in USD equivalent — you can remit in any freely convertible currency
- Unused limit does not carry forward to the next financial year
What Can You Send Money For Under LRS?
| Permitted Purpose | TCS Rate | Documents Typically Required |
|---|
| Education abroad (own funds) | 5% above ₹7L | University admission letter, fee invoice |
| Education abroad (education loan) | 0.5% above ₹7L | Above + loan sanction letter |
| Medical treatment abroad | 5% above ₹7L | Doctor referral, hospital quote |
| Maintenance of close relatives | 20% above ₹7L | Proof of relationship |
| Travel expenses | 20% above ₹7L | Travel itinerary |
| Gift to NRI relatives | 20% above ₹7L | Relationship proof |
| Foreign investment (stocks, funds) | 20% above ₹7L | Investment account details |
| Purchase of property abroad | 20% above ₹7L | Sale agreement |
| Overseas tour package | 5% from ₹1 | Tour booking confirmation |
What Is NOT Allowed Under LRS?
- Remittances to countries on India's FATF blacklist
- Purchase of foreign lottery tickets or sweepstakes
- Remittances for trading in foreign exchange abroad
- Capital account transactions not specifically permitted
- Remittances for margin calls on overseas exchanges (without specific RBI approval)
💱 Best Forex Card & Outward Transfer
BookMyForex — Live Interbank Rates
India's largest forex platform. Lock in live rates for forex cards and outward remittances. Doorstep delivery in 65+ cities.
Get Best Rate →
Use code BIKAJZ3y0mK
We may earn a commission if you sign up · No extra cost to you
How to Remit Under LRS — Step by Step
- Gather documents: PAN card (mandatory), passport, purpose-specific documents (university letter, medical certificate etc.)
- Choose your platform: Your bank, Wise India, Instarem, BookMyForex, or another RBI-authorised dealer
- Complete Form A2: This is the LRS declaration form — declare the purpose, amount, beneficiary country. Most online platforms handle this digitally.
- KYC completion: First-time LRS users must complete video KYC — subsequent transfers are simpler
- Initiate transfer: Fund via NEFT/IMPS from your bank account
- TCS deduction: Bank or platform deducts TCS if applicable and deposits with IT Department against your PAN
- Keep receipts: Save TCS certificates for your ITR filing
LRS Tracking — How Banks Monitor Your Annual Usage
Banks track your cumulative LRS transfers across all banks using your PAN number. The RBI's Centralised Information Management System (CIMS) aggregates LRS data. If you try to remit more than USD 250,000 in a year across multiple banks, the system will flag and reject the excess. Always track your own LRS usage to avoid last-minute rejections when you urgently need to send money.
📈 Trade Currency Pairs
Exness — Trade USD/INR & More
Trade the currency pairs you follow here. Tight spreads, instant withdrawals, regulated globally. 1M+ traders worldwide.
Start Trading Free →
We may earn a commission if you sign up · Trading involves risk · Not financial advice
Frequently Asked Questions
Does the LRS limit apply to NRIs?
No — LRS applies only to resident Indians. NRIs (non-resident Indians) are not subject to LRS restrictions. NRIs can remit money from their NRE accounts freely and from NRO accounts up to USD 1 million per year after paying applicable taxes. The LRS framework is specifically for resident Indians sending money abroad.
Can I send more than USD 250,000 in a year for any purpose?
For most LRS purposes, USD 250,000 per individual per year is the hard cap. However, certain transactions (like specific business payments or emigration-related remittances) may be handled outside LRS with RBI approval. For personal purposes like education, maintenance, or investment, USD 250,000 is the absolute annual ceiling per individual.
What happens if I exceed the LRS limit?
Banks are required to reject transfer requests that would cause you to exceed your annual LRS limit. Attempting to circumvent the limit through multiple banks simultaneously is monitored by RBI and constitutes a violation of FEMA (Foreign Exchange Management Act), which can result in penalties of up to three times the amount involved.
Disclaimer: Exchange rates and financial regulations change frequently. This guide is for educational reference only and is not financial advice. Always verify current rates and rules with your bank or a qualified advisor before making financial decisions.