Concept:The Liberalised Remittance Scheme (LRS) allows resident individuals to remit funds abroad up to a specified annual limit set by the Reserve Bank of India.
Explanation:As of May 2025, the annual remittance limit under the LRS is
USD 2,50,000 per financial year (April–March).
This limit applies to all remittances, whether for investment, travel, education, or medical expenses.
The scheme covers both current and capital account transactions.
It is available to all resident individuals, including minors, with the minor's declaration countersigned by a guardian.
There is no restriction on the frequency of remittances, provided the cumulative amount remains within the ceiling of
USD 2,50,000.
However, the LRS facility is not available to corporates, partnership firms, Hindu Undivided Families (HUFs), or trusts.
Remittances for prohibited activities such as gambling or lottery winnings are banned under FEMA.
Additionally, under the Finance Act, a Tax Collected at Source (TCS) of
20% applies on remittances exceeding ₹
7 lakh per financial year, except for education and medical purposes, which enjoy lower rates.
Answer:The correct option is
C. USD 2,50,000 per financial year.