Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian. The Scheme is not available to corporates, partnership firms, HUF, Trusts etc.
Current account transactions are transactions undertaken by a resident that do not alter his / her assets or liabilities, including contingent liabilities, outside India.
All other transactions are called capital account transaction.
Remittances under the Scheme can be consolidated in respect of family members subject to individual family members complying with its terms and conditions