How to send money abroad under LRS by Indian Residents
Check out, How to send money abroad under LRS by Indian Residents, Types of Documents required, applicable Charges and TCS Provisions
Foreign Outward Remittance
Case – I: Retail Customers
Type 1: Indian Residents
Indian Residents can remit their money under the Liberalised Remittance Scheme (LRS) of RBI during the financial year (April-March) up to $2.5 Lakhs.
Basic Documents Required:
| Form A2 | Yes |
| Declaration under FEMA | Yes |
| Copy of Pan Card | Yes |
| Form 15CA/15CB | N.A. |
Types of Charges:
- Margin Matrix, % may vary on the basis amount of remittance.
- SWIFT Charges
- GST (Service Tax)
- TCS is to be collected by the Branch, on the basis of:
- Nature of Remittance
- Amount of Remittance
- Applicable TCS rate
Note: Foreign Outward Remittance charges are not applicable in case of remittance made by an individual.
Example: Mr. A, an Indian resident wants to send money to his Son abroad, amounting to $20,000. Assuming the conversion rate is Rs.80/USD. Therefore, amount of remittance in INR is 20,000 * 80 = Rs. 16,00,000/-
As per the above scenario, Mr. A needs to submit Form A-2 along with a Declaration under FEMA, and a copy of Pancard to the Bank.
Calculation of Charges
- Margin Matrix= $20,000 * 12% = Rs. 2,400/-
- SWIFT Charges = Rs. 500 + 18% GST = 590/-
- GST (Service Tax):
Up to Rs. 1 Lakhs * 1% = 1,000
More than Rs. 1 Lakhs – Rs. 10 Lakhs = 9,00,000 * 0.5% = 4500
Above Rs. 10 Lakhs = 6,00,000 * 0.1% = 600
Total = 1000 + 4500 + 600 = 6,100
GST = 6,100 * 18% = 1,098/-
TCS on Rs. 16,00,000 would be,
Rs. 16,00,000 – 7,00,000 = 9,00,000 * 20% = 1,80,000
You can claim the above TCS amount at the time of filing your Income-tax Return.
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