Liberalised Remittance Scheme (LRS)

Union Budget 2026-27 called to reduce the tax collected on source (TCS) for pursuing education and medical purposes under the liberalised remittance scheme (LRS) from the present 5% to 2%.

  • LRS was launched by the Reserve Bank of India in 2004 with an initial annual limit of USD 25,000.
  • It intended to simplify and streamline the process of remitting funds outside India.
  • The scheme is available only to resident individuals. It does not cover corporates, Hindu Undivided Families (HUFs), partnership firms, or trusts.
  • Under LRS, remittances cannot be used for purchasing lottery tickets, banned magazines, transactions with countries not compliant ....
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