Facilities for Residents
- Travellers going to all countries other than (a) and (b) below are allowed to purchase foreign
currency notes / coins only up to USD 3000 per visit. Balance amount can be carried in the form
of store value cards, travellers cheque or banker’s draft.
Exceptions to this are
(a) travellers proceeding to Iraq and Libya who can draw foreign exchange in the form of foreign currency
notes and coins not exceeding USD 5000 or its equivalent per visit;
(b) travellers proceeding to the Islamic Republic of Iran, Russian Federation and other Republics of
Commonwealth of Independent States who can draw entire foreign exchange (up-to USD 250,000) in the form
of foreign currency notes or coins.
For travellers proceeding for Haj/ Umrah pilgrimage, full amount of entitlement (USD 250,000) in cash or
up to the cash limit as specified by the Haj Committee of India, may be released by the ADs and FFMCs.
- A resident of India, who has gone out of India on a temporary visit may bring into India at the
time of his return from any place outside India (other than Nepal and Bhutan), currency notes of
Government of India and Reserve Bank of India notes up to an amount not exceeding Rs.25,000. A
person may bring into India from Nepal or Bhutan, currency notes of Government of India and
Reserve Bank of India notes, in denomination not exceeding Rs.100. Any person resident outside
India, not being a citizen of Pakistan and Bangladesh and also not a traveller coming from and
going to Pakistan and Bangladesh, and visiting India may bring into India currency notes of
Government of India and Reserve Bank of India notes up to an amount not exceeding Rs. 25,000
while entering only through an airport.
Any person resident in India who had gone to Pakistan and/or Bangladesh on a temporary visit, may bring
into India at the time of his return, currency notes of Government of India and Reserve Bank of India
notes up to an amount not exceeding Rs. 10,000 per person.
- A person coming into India from abroad can bring with him foreign exchange without any limit.
However, if the aggregate value of the foreign exchange in the form of currency notes, bank
notes or travellers cheques brought in exceeds USD 10,000 or its equivalent and/or the value of
foreign currency alone exceeds USD 5,000 or its equivalent, it should be declared to the Customs
Authorities at the Airport in the Currency Declaration Form (CDF), on arrival in India.
- On return from a foreign trip, travellers are required to surrender unspent foreign exchange
held in the form of currency notes and travellers cheques within 180 days of return. However,
they are free to retain foreign exchange up to USD 2,000, in the form of foreign currency notes
or TCs for future use or credit to their Resident Foreign Currency (Domestic) [RFC (Domestic)]
Accounts.
- The residents can hold foreign coins without any limit.
Liberalised Remittance Scheme for Resident Individuals:
- Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed
to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible
current or capital account transaction or a combination of both. Further, resident individuals
can avail of foreign exchange facility for the purposes mentioned in Para 1 of Schedule III of
FEM (CAT) Amendment Rules 2015, dated May 26, 2015, within the limit of USD 2, 50,000 only.
In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s
natural guardian. The Scheme is not available to corporates, partnership firms, HUF, Trusts etc.
- Individuals can avail of foreign exchange facility for the following purposes within the LRS
limit of USD 2,50,000 on financial year basis:
- Private visits to any country (except Nepal and Bhutan)
- Gift or donation
- Going abroad for employment
- Emigration
- Maintenance of close relatives abroad
- Travel for business, or attending a conference or specialised training or for meeting
expenses for meeting medical expenses, or check-up abroad, or for accompanying as
attendant to a patient going abroad for medical treatment/ check-up
- Expenses in connection with medical treatment abroad
- Studies abroad
- Any other current account transaction which is not covered under the definition of
current account in FEMA 1999.
The remittance transaction without RBI’s permission for all residual current account transactions
which are not prohibited/ restricted transactions under Schedule I, II or III of FEM (CAT) Rules, 2000,
as amended or are defined in FEMA 1999. It is for the AD to satisfy about the genuineness of the
transaction, as hitherto.
- Facilities to grant loan in rupees to NRI/ PIO close relative under LRS
A resident individual is permitted to make a rupee loan to a NRI/PIO who is a close relative of the
resident individual (‘relative’ as defined in Section 2(77) of the Companies Act, 2013) by
way of crossed cheque/ electronic transfer subject to the following conditions:
- The loan is free of interest and the minimum maturity of the loan is one year.
- The loan amount should be within the overall LRS limit of USD 2,50,000, per financial year,
available to the resident individual. It would be the responsibility of the lender to ensure
that the amount of loan is within the LRS limit of USD 2,50,000 during the financial year.
- The loan shall be utilised for meeting the borrower's personal requirements or for his own
business purposes in India.
- The loan shall not be utilised, either singly or in association with other person, for any of
the activities in which investment by persons resident outside India is prohibited, namely;
- the business of chit fund, or
- Nidhi Company, or
- agricultural or plantation activities or in real estate business, or construction of
farmhouses, or
- trading in Transferable Development Rights (TDRs).
Explanation: For the purpose of item (c) above, real estate business shall not include development of
townships, construction of residential / commercial premises, roads or bridges.
- The loan amount should be credited to the NRO a/c of the NRI /PIO. Credit of such loan
amount may be treated as an eligible credit to NRO a/c.
- The loan amount shall not be remitted outside India.
- Repayment of loan shall be made by way of inward remittances through normal banking
channels or by debit to the Non-resident Ordinary (NRO)/ Non-resident External (NRE) / Foreign
Currency Non-resident (FCNR) account of the borrower or out of the sale proceeds of the shares
or securities or immovable property against which such loan was granted.
- Facility to Resident Individual to Gift in rupees to NRI/ PIO close relative under
LRS
A resident individual can make a rupee gift to a NRI/PIO who is a close relative of the resident
individual [relative’ as defined in Section 2(77) of the Companies Act, 2013] by way of crossed
cheque /electronic transfer. The amount should be credited to the Non-Resident (Ordinary) Rupee Account
(NRO) a/c of the NRI / PIO and credit of such gift amount may be treated as an eligible credit to NRO
a/c. The gift amount would be within the overall limit of USD 250,000 per financial year as permitted
under the LRS for a resident individual. It would be the responsibility of the resident donor to ensure
that the gift amount being remitted is under the LRS and all the remittances made by the donor during
the financial year including the gift amount have not exceeded the limit prescribed under the LRS.
- There are no restrictions on the frequency of remittances under LRS. However, the total amount
of foreign exchange purchased from or remitted through, all sources in India during a financial
year should be within the cumulative limit of USD 2,50,000.
Once a remittance is made for an amount up to USD 2,50,000 during the financial year, a resident
individual would not be eligible to make any further remittances under this scheme, even if the proceeds
of the investments have been brought back into the country.
- Resident individuals (but not permanently resident in India) who have remitted their entire
earnings and salary and wish to further remit ‘other income’ may approach RBI with
documents through their AD bank for consideration.
- Remittances directly or indirectly to countries identified by the Financial Action Task Force
(FATF) as “non- cooperative countries and territories”, from time to time; and
remittances directly or indirectly to those individuals and entities identified as posing
significant risk of committing acts of terrorism as advised separately by the Reserve Bank to
the banks are not permissible.
- The remittance facility under the Scheme is not available for the following:
- Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery
tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of
Foreign Exchange Management (Current Account Transactions) Rules, 2000.
- Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty.
- Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
- Remittance for trading in foreign exchange abroad.
- Capital account remittances, directly or indirectly, to countries identified by the Financial
Action Task Force (FATF) as “non- cooperative countries and territories”, from time
to time.
- Remittances directly or indirectly to those individuals and entities identified as posing
significant risk of committing acts of terrorism as advised separately by the Reserve Bank to
the banks.
TCS on foreign remittance under section 394(1) as per Income Tax Act, 2025 substitution of section 206C(1G) – Section 394(1)(7) mandates the collection of tax at source by an authorised dealer, who receives an amount, for remittance from a buyer under the Liberalised Remittance Scheme (LRS) of the RBI and section 394(1)(8) mandates a seller to collect TCS on selling of an overseas tour program package, who receives any amount from a buyer, at the rates specified therein. As per Income Tax Act, 2025, TCS under section 394(1)(7) shall be as outlined below –
Different situations w.e.f. 01.04.2026
| Sr No |
Purpose |
Rate of TCS * |
| i. |
Education financed by a loan from a prescribed financial institution |
TCS not applicable |
| ii. |
Education, other than above . |
2% of the aggregate of the amounts more than ₹10 lakh in a Tax Year |
| iii. |
Medical treatment |
2% of the aggregate of the amounts more than ₹10 lakh in a Tax Year |
| iii. |
Purchase of overseas tour programme package |
2% of the amount remitted |
| iii. |
Any other purpose: (other than those specified above) |
20% of the aggregate of the amounts more than ₹10 lakh in a Tax Year |
*TCS rates are applicable effective April 1, 2026, according to the Finance Act, 2026.
- It is mandatory for the resident individual to provide his/her Permanent Account Number (PAN)
for all transactions under LRS
