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The Scope of LRS

In todayu2019s global economy, seamless cross-border money transfers are vital for business, education, and investment. For Indian residents, the Liberalised Remittance Scheme (LRS)u2014introduced by the RBI under FEMA, 1999u2014simplifies overseas remittances that once required individual approvals. LRS allows resident individuals to remit funds abroad for various permitted purposes, within regulatory limits and under proper compliance. With evolving rules, including TCS provisions, understanding LRS is key to smooth foreign transactions. <br>At SKMC Global helps businesses.

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The Scope of LRS

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  1. THE SCOPE OF LRS The Liberalised Remittance Scheme (LRS) allows Indian residents to remit up to USD 250,000 per financial year for permissible current and capital account transactions abroad. Whether for education, travel, investments, or gifts—LRS opens the door to global financial flexibility within regulatory limits. IMPORTANT FEATURES AND APPLICABILITY Eligibility:All resident individuals, including minors (via guardian), can avail LRS. Not Eligible:Corporates, partnership firms, and HUFs are excluded. Limit:Up to USD 250,000 per financial year across all accounts and purposes. Frequency:Unlimited remittances allowed within the overall annual limit. PAN Monitoring:All LRS remittances are tracked against the individual's PAN to ensure compliance. KEY LRS DOCUMENTS PAN Card: Mandatory for all LRS transactions. Form A2: Declaration confirming purpose and RBI compliance. Bank Forms: Additional declarations may be required by banks. KYC & AML: Banks must verify documents and ensure KYC/AML compliance. Purpose Code: Each remittance must include a valid purpose code and proof. No Credit: Credit facilities against LRS remittances are not permitted. Record Keeping: Maintain proper records and ensure timely RBI reporting. At SKMC Global assists businesses in navigating and complying with the Liberalised Remittance Scheme (LRS) by offering end-to-end advisory, documentation, and regulatory support. www.skmcglobal.com info@skmcglobal.com +91 989-125-5499

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