Before asking “How much money can I send abroad from India?”, ask one question:
Are you sending it as a resident individual, or as a business entity?
That determines which rules apply.
A resident individual may use RBI's Liberalised Remittance Scheme (LRS). Companies and other entities follow different outward-remittance rules.
Are you sending it as a resident individual, or as a business entity?
That determines which rules apply.
A resident individual may use RBI's Liberalised Remittance Scheme (LRS). Companies and other entities follow different outward-remittance rules.
TL;DR
- Resident individuals can remit up to USD 250,000 per financial year under LRS for permitted current and capital-account transactions.
- The USD 250,000 cap is not a company or partnership outward-remittance limit.
- For LRS, PAN is mandatory, and the authorised person uses the declared purpose to assess the remittance.
- As of 2026, TCS generally starts after ₹10 lakh of aggregate LRS remittances, with the rate depending on purpose.
First question: who is sending the money?
If you are a resident individual
LRS is the starting point.
RBI allows resident individuals, including minors, to remit up to USD 250,000 in one financial year from April to March for permitted current-account transactions, capital-account transactions, or a combination of both.
Remittances across authorised channels count towards the same annual limit. For minors, the natural guardian countersigns the declaration.
If you are a company, LLP, partnership or other entity
Do not apply the personal LRS limit.
RBI expressly states that LRS is not available to corporates, partnership firms, HUFs, trusts and similar entities.
Business payments instead follow the FEMA rules applicable to the transaction, with the correct purpose code, documentation and authorised channel. Overseas Investment rules may apply to investments.
What can a resident individual send money abroad for?
LRS covers many permitted purposes, including:
| Purpose | Examples |
|---|---|
| Private travel | Holiday and personal travel expenses |
| Education | Tuition and eligible study-related expenses |
| Medical treatment | Treatment and related permitted expenses |
| Maintenance of relatives | Supporting eligible family members abroad |
| Gift or donation | Permitted overseas gifts/donations |
| Employment/emigration | Eligible expenses connected with moving abroad |
| Business travel | Permitted travel expenditure |
| Investment | Permitted overseas investments and assets |
For studies, medical treatment and emigration, amounts above the normal ceiling can be allowed where specified conditions are met.
What cannot be sent under LRS?
The USD 250,000 limit does not mean every overseas transaction is permitted.
Examples of prohibited or restricted remittances include:
- lottery winnings and purchase of lottery tickets
- certain gambling, sweepstake and proscribed activities
- margin or margin-call payments to overseas exchanges or counterparties
- transactions otherwise prohibited under FEMA
- remittances to restricted jurisdictions where applicable
The ₹10 lakh checkpoint: when does TCS apply?
TCS is often confused with the USD 250,000 LRS limit. They are separate rules.
For current LRS remittances, the authorised dealer looks at your aggregate remittances during the financial year.
| LRS purpose | Current TCS position |
|---|---|
| Up to ₹10 lakh aggregate LRS remittance | No TCS |
| Education financed by specified education loan | No TCS |
| Education or medical treatment | 5% on the amount above ₹10 lakh |
| Other LRS purposes | 20% on the amount above ₹10 lakh |
The ₹10 lakh threshold is aggregate across LRS remittances. TCS is tax collected on your behalf, with credit available under the income-tax rules.
What about overseas tour packages?
Overseas tour programme packages have a separate TCS rule: the seller currently collects 5% on payments up to ₹10 lakh and 20% on the excess.
Do not automatically apply the ordinary LRS threshold calculation to a packaged overseas tour purchase.
What documents should you expect?
There is no universal checklist for every outward remittance.
For an LRS transaction, common requirements include:
- PAN, which RBI makes mandatory for LRS
- Form A2 / remittance declaration as applicable
- beneficiary and bank details
- purpose code
- documents supporting the purpose, where required
Supporting evidence can include an admission letter, medical estimate, investment document or invoice. A passport is not a universal requirement for every LRS remittance.
What happened to Form 15CA and Form 15CB?
This is an important 2026 update.
The Income-tax Act, 2025 came into force on 1 April 2026. For remittances made on or after that date:
- Form 145 replaces old Form 15CA
- Form 146 replaces old Form 15CB
These forms apply to specified payments to non-residents or foreign companies and are not automatically required for every personal LRS remittance.
For taxable remittances above the applicable ₹5 lakh threshold, Form 146 may be required unless the Assessing Officer route or an exemption applies.
Sending money abroad as a business: what changes?
For businesses, check:
What are you paying for?
Supplier invoice, SaaS subscription, services, royalties, imports, investment, or another purpose?
Is tax withholding relevant?
Payments to non-residents may require a taxability assessment and, where applicable, Form 145/146 compliance.
Which FEMA purpose code applies?
The remittance must match the actual transaction.
What supporting document proves the payment?
Usually an invoice, agreement, purchase order or other commercial document.
Which authorised route will process it?
Use an AD bank or another RBI-authorised arrangement appropriate to the payment.
How should you choose an outward-payment route?
Compare:
- FX rate and markup
- transfer/processing fee
- intermediary deductions
- settlement or delivery time
- supported currencies/countries
- purpose-code and documentation workflow
- payment tracking
- support for tax/compliance documentation
Where PayGlocal fits
PayGlocal is authorised by RBI as a Payment Aggregator – Cross Border – Inward & Outward (PA-CB-I&O), in addition to its PA-O authorisation.
Its outward authorisation covers eligible cross-border flows from India, while the underlying transaction must still comply with FEMA, purpose-code, documentation and tax requirements.
