LRS Limit 2026: Liberalised Remittance Scheme Rules and TCS

The LRS limit for 2026 is USD 2,50,000 per person per financial year (April to March), the same as in 2025. RBI has not changed it since 26 May 2015. Every resident individual, including a minor, gets a separate limit, and anything above it needs RBI’s prior approval.

Key facts

How the LRS limit has changed

RBI started the Liberalised Remittance Scheme on 4 February 2004 with a limit of USD 25,000. The table shows each revision listed in RBI’s Master Direction on LRS.

So the RBI LRS limit was USD 2,50,000 in 2025, and the figure for 2026 is the same. The rupee value moves with the exchange rate; check today’s rate on the USD to INR page.

What you can send money for

The USD 2,50,000 cap covers current and capital account transactions together. Current account purposes listed by RBI include:

• private visits to any country except Nepal and Bhutan;
• gifts and donations;
• going abroad for a job, and emigration;
• maintenance of close relatives abroad;
• business trips, conferences and training;
• medical treatment abroad;
• studies abroad.

Capital account uses include opening a foreign currency account with a bank abroad, buying property abroad, and overseas investment under the Overseas Investment Rules, 2022. Lending to an NRI relative is also allowed. You can also send money to a foreign currency account in GIFT City (IFSC).

When you can send more than USD 2,50,000

For medical treatment and for studies abroad, a bank can release more than USD 2,50,000 against an estimate from the hospital or university, without RBI approval. A person going with a patient as an attendant gets a separate USD 2,50,000.

What is not allowed under LRS

• Items banned under Schedule I or restricted under Schedule II of the Current Account Transactions Rules, 2000, such as lottery tickets and banned magazines.
• Margin payments or margin calls to overseas exchanges or counterparties.
• Trading in foreign exchange abroad.
• Capital account remittances to countries the FATF lists as non-cooperative.
• Gifting foreign currency to another resident’s foreign account held under LRS.
• Borrowing from an Indian bank to fund capital account remittances; banks may not lend for this.

TCS on LRS remittances from 1 April 2026

From 1 April 2026, TCS on foreign remittances falls under the Income-tax Act, 2025, as amended by the Finance Act, 2026. Budget 2026 cut the rate for education and medical remittances from 5% to 2%. It also set a flat 2% rate for overseas tour packages.

The ₹10 lakh threshold is one combined limit per PAN. It counts every LRS remittance, forex card load and foreign-currency purchase you make that year, across all banks and money changers. HDFC Bank’s notice adds that air tickets or hotel bookings it processes under LRS attract the “other purpose” rate. TCS is not a final tax. You claim it as credit when you file your return. Work out the amount with the TCS on remittance calculator, and read the LRS limit and TCS rules page for worked examples.

How to send money under LRS

1. Choose one authorised dealer bank branch for all your capital account remittances under LRS.
2. Make sure your PAN is valid and linked with Aadhaar. An inoperative PAN attracts higher TCS.
3. Fill in Form A2 and the LRS declaration, stating the purpose and the amounts already sent this year.
4. Attach purpose documents, such as a university fee letter or hospital estimate, if the bank asks.
5. Give the beneficiary’s name, account number, bank and SWIFT or IBAN code.
6. Fund your account for the amount plus TCS, bank charges and GST on the conversion fee.
7. Keep the remittance advice and the TCS certificate for your tax return.

For capital account remittances, RBI’s FAQ asks banks to check that you have held the account for at least a year. A new customer gets extra due diligence and must share the previous year’s bank statement.

Frequently asked questions

What is the LRS limit in 2026 in India?

USD 2,50,000 per resident individual per financial year (April to March). RBI has not changed it since May 2015.

What was the RBI LRS limit in 2025?

The limit in 2025 was also USD 2,50,000 per financial year. No revision was made in FY 2024-25 or FY 2025-26.

Can a family combine LRS limits?

Yes, each family member has a separate limit, so remittances can be pooled. For capital account transactions such as investments or a foreign account, each member must be a co-owner to club limits.

What is the TCS on LRS for education in 2026?

Nil if the money comes from an education loan from a specified financial institution. Otherwise nil up to ₹10 lakh a year and 2% above that, from 1 April 2026.

Do international credit card spends count towards LRS?

Forex card loads, foreign currency purchases and debit card spends abroad count towards the ₹10 lakh TCS threshold. Banks’ April 2026 notices do not list credit card spends abroad, so ask your card issuer how it reports them.

How do I complain about an LRS remittance problem?

Complain to your bank first. If it does not reply within 30 days or you are unhappy with its reply, file with the RBI Ombudsman at cms.rbi.org.in within 90 days under the Integrated Ombudsman Scheme, 2026.

This is general information, not tax advice; for large or mixed-purpose remittances, a chartered accountant can check the TCS and reporting.

Sources

• Master Direction — Liberalised Remittance Scheme — Reserve Bank of India (checked 17 Sep 2026)
• FAQs on Liberalised Remittance Scheme — Reserve Bank of India (checked 17 Sep 2026)
• Integrated Ombudsman Scheme, 2026: FAQs — Reserve Bank of India (checked 17 Sep 2026)
• Income-tax Act, 2025 as amended by the Finance Act, 2026 — Income Tax Department (checked 17 Sep 2026)
• Revision in TCS on LRS remittances from 1 April 2026 — Standard Chartered Bank India (checked 17 Sep 2026)
• Revision in TCS on LRS transactions w.e.f. 1 April 2026 — HDFC Bank (checked 17 Sep 2026)