Quick Summary
Spending in foreign exchange through international credit cards will be covered under the RBIs liberalised remittance scheme (LRS), under which a resident can remit money abroad up to a maximum of $2.50 lakh per annum without the authorisation of the Reserve Bank,as per a Finance Ministry notificati
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FAQ :
The LRS allows resident individuals to remit money abroad up to $2.50 lakh per annum without needing authorisation from the Reserve Bank of India.
Yes, spending on international credit cards for expenses incurred outside India is now included under the LRS.
The inclusion of international credit card usage in LRS and the new TCS rates come into effect from July 1, 2023.
The TCS rate has been hiked to 20% on overseas tour packages and funds remitted under LRS, up from the previous 5%.
Yes, the 20% TCS rate does not apply to remittances made for education and medical purposes.
Yes, any remittance exceeding $2.5 lakh or its equivalent in foreign currency would require approval from the RBI.
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