Liberalised Remittance Scheme (LRS)

The Reserve Bank of India scheme under which a resident individual in India may send a set amount abroad each financial year (April to March) for permitted current or capital account purposes, such as gifts, family maintenance, study, travel or investment. It is for residents. An NRI repatriating money from an NRO account uses a different facility, the Remittance of Assets rules. A resident parent who sends money to a child abroad uses the LRS, and tax collected at source can apply above a threshold.