Definition
The application-cum-declaration form you sign when buying foreign exchange or sending money abroad under LRS. It records your PAN, the purpose, the amount, and a declaration of what you have already remitted that financial year.
What Form A2 asks for
- Your name, address and PAN
- Purpose of the remittance, such as a private visit or tourism
- Amount and currency
- Beneficiary details, for a transfer abroad
- A declaration of LRS remittances already made in the current financial year
Banks and authorised money changers use it to check that you are within the LRS limit and to work out TCS.
How you fill it today
Most banks and online forex providers pre-fill Form A2 from your details and ask you to accept it with an OTP or e-sign. At a bank branch you may still sign a paper copy. When you pay an Indian tour operator for an overseas package, the operator handles its own paperwork and collects TCS separately.
Why the declaration matters
Your past remittances decide whether TCS applies. If you have already sent ₹8 lakh abroad this year for your daughter's university fees and now buy ₹3 lakh of travel forex, your total crosses ₹10 lakh, so TCS applies on the portion above the threshold. Under-declaring doesn't save tax; it creates a mismatch in your tax records that can be picked up later.
Example
A Pune software engineer buys USD 500 in cash and loads EUR 2,500 on a forex card before a Germany trip. The provider's app shows Form A2 pre-filled with private visit as the purpose and the amounts, then asks about other LRS remittances this year. She confirms there were none, e-signs, and the order goes through with no TCS.
Practical advice
Fill it in the name of the person travelling, with their own PAN. Keep a copy with your forex invoice for your tax records.
Our foreign exchange desk prepares Form A2 when you buy travel forex.