Liberalised Remittance Scheme (LRS)
By virtue of LRS scheme by RBI, a citizen of india can remit (send money) $2,50,000 (2.3 Crore) to a foreign entity per financial year.
The purpose of this remittance can be:
- Investment, stocks or us treasury bonds
- Real estate investment
- Traveling abroad expenditure (business as well as leisure)
- Traveling for education
- Sending money to family overseas
Cost of transaction: money exchange cost (as facilitated by bank) + 18% GST on the exchange cost.
TCS is applicable on this over limit of 10L.
For investments
Under International Financial Services Centres Authority (IFSCA), Global Access Provider (GAP) in GIFT city act as India's global investing gateway.
Sources
- https://www.indmoney.com/blog/us-stocks/liberalised-remittance-scheme