LRS covers foreign education, travel, gifts, medical treatment, maintenance of relatives and overseas investment. Banks collect tax at source (TCS) on remittances above a threshold, which is ₹10 lakh a year for most purposes from FY 2025-26. The TCS can be adjusted against your income tax.
Finance glossary
What is Liberalised Remittance Scheme (LRS)?
The RBI scheme that allows resident Indians to send up to US$250,000 abroad each financial year for permitted purposes.