S. Jaykishan

Chartered Accountants

Liberalised Remittance Scheme (LRS) for resident individuals – Increase in the limit from USD 75,000 to USD 125,000 and its utilization for acquisition of immovable property

Liberalised Remittance Scheme (LRS) for resident individuals

RBI vide A.P.(DIR Series) Circular No. 138 dated June 3, 2014, has enhanced the existing limit of USD 75,000 per financial year (April-March) in respect of the Liberalised Remittance Scheme for resident individuals to USD 125,000 per financial year (April-March). Accordingly, AD Category – I banks have been allowed to remit up to USD 125,000 per financial year, under the Scheme, for any permitted current or capital account transaction or a combination of both.

It is further clarified vide Circular No. 5 dated July 17, 2014 that the Scheme can now be used for acquisition of immovable property outside India.