Quick answer
The Liberalised Remittance Scheme lets every resident individual, including minors, send or spend up to USD 250,000 (about ₹2.2 crore) abroad each financial year. Travel forex, forex card loads, tuition and gifts all count. Each transaction needs your PAN and a Form A2 declaration. A holiday uses a tiny fraction of the limit; the ₹10 lakh TCS threshold matters far more.
Key takeaways
- USD 250,000 per person per financial year (April to March), across all purposes combined.
- Holiday forex and forex card loads count; overseas credit card spends are not counted for TCS at the time of review.
- Every LRS transaction needs your PAN and a Form A2 declaration of what you have already sent that year.
- For travel, the limits that actually bite are the ₹10 lakh TCS threshold and the USD 3,000 cash cap per trip.
What is the LRS limit, in plain terms?
The Reserve Bank of India's Liberalised Remittance Scheme sets how much a resident individual can send or spend abroad without special permission: USD 250,000 per financial year, April to March. At ₹88 to the dollar, that's about ₹2.2 crore.
Three points people miss:
- It is per person, not per family. A couple has USD 500,000 between them, and each child, including a minor, has their own limit, with a parent signing for them.
- It is one limit across all purposes. Travel, tuition, medical treatment, gifts to family abroad, overseas shares and property all draw from the same USD 250,000.
- It resets on 1 April, not on your travel date.
LRS is for individuals only. Companies, firms and trusts follow different rules.
What counts towards LRS on a holiday?
| Spend | Under LRS? |
|---|---|
| Foreign currency notes bought in India | Yes |
| Loading a forex card | Yes |
| Bank transfer to a foreign hotel or tour company | Yes |
| Spends or ATM withdrawals abroad on an Indian debit card | Yes |
| UPI payments abroad from your Indian bank account | Treated like debit card spends |
| Overseas tour package from an Indian operator | Reported against your PAN; 2% TCS applies |
| Spends abroad on an Indian credit card | Not counted for TCS at the time of review |
| Flight tickets bought in India in rupees | No |
How much of the limit does a holiday actually use?
Very little. A two-week Europe trip for a couple with a ₹6 lakh package and ₹2 lakh of forex comes to about USD 9,000, against the USD 500,000 the two of them can send in a year. Even families paying US university fees rarely get near the cap.
The numbers that matter on a trip are smaller:
- USD 3,000 in cash per trip. RBI lets you carry foreign currency notes up to USD 3,000 or equivalent per trip; the rest has to be on a forex card or another non-cash form. A few destinations have different limits.
- ₹10 lakh for TCS. Once your LRS spending in a financial year crosses ₹10 lakh, travel forex attracts 20% TCS on the excess. Our guide to TCS on foreign tour packages has worked examples.
- ₹50,000 in cash. Forex purchases above ₹50,000 must be paid from a bank account, by card or by cheque, not in cash.
What is Form A2 and when do you sign it?
Form A2 is the application and declaration you sign each time you buy forex or send money abroad under LRS. It records:
- Your name, address and PAN
- The purpose, such as "private visit" for a holiday
- The amount and currency
- Beneficiary details, if you're transferring money abroad
- A declaration of the LRS remittances you've already made this financial year
Online forex providers and most bank apps pre-fill it and ask you to accept with an OTP. At a branch you may sign a paper copy. For travel forex, expect to show your passport, a visa where one is needed, and your tickets.
Why does the declaration matter?
Your declared total decides TCS. If you've sent ₹8 lakh abroad for a daughter's tuition and now buy ₹3 lakh of travel forex, your total crosses ₹10 lakh and TCS applies on the part above. Under-declaring doesn't save tax. Banks report LRS transactions against your PAN, the data flows into your Annual Information Statement, and mismatches surface later as tax notices.
Worked example: one family, two names
A Delhi father sends ₹9.5 lakh to his daughter's Canadian university in July, with no TCS because he is under ₹10 lakh. In December, the family plans a US holiday and needs USD 3,000 in cash plus USD 4,000 on a forex card, about ₹6.16 lakh.
- Bought in the father's name: his total becomes ₹15.66 lakh, so ₹5.66 lakh attracts 20% TCS, about ₹1.13 lakh.
- Bought in the mother's name for her own travel: she has sent nothing abroad this year, so TCS is nil.
Either way, the family is nowhere near the USD 250,000 limit. The threshold, not the limit, is what changes the bill.
Keep a simple running total of LRS spends for each family member through the year, including tuition, gifts and investments. It takes two minutes and tells you whose name the next forex purchase should go in.
Do you need PAN for every LRS transaction?
Yes. PAN is mandatory for LRS transactions whatever the amount, and it must be operative, which means linked to Aadhaar. With an inoperative PAN, the bank may refuse the transaction or collect TCS at a higher rate. The name on your PAN should match your passport, since forex sellers check both. For minors, banks differ: some ask for the child's own PAN, others accept a parent's. See PAN for forex.
What can't you use LRS for?
LRS has a short list of prohibited uses. You can't use it for lottery tickets, sweepstakes or betting, for trading foreign exchange on overseas platforms, or for remittances to countries the Financial Action Task Force lists as non-co-operative. RBI publishes an alert list of unauthorised forex trading platforms; money sent to them is at risk and may break the law.
Going above USD 250,000 in a year needs prior RBI approval, which is rarely relevant for travel.
What happens to unspent forex when you return?
You can keep up to USD 2,000 in foreign currency notes and coins at home for your next trip. Anything above that should be sold back to an authorised dealer, or credited to a resident foreign currency account, within 180 days of your return. Forex card balances can usually stay on the card for the next trip; ask about inactivity fees.
Our foreign exchange desk prepares Form A2 and checks your LRS position when you buy travel forex.
Frequently asked questions
What is the LRS limit for 2026-27?
Do credit card spends abroad count towards LRS?
Is Form A2 required to buy forex for a holiday?
Can family members use their own LRS limits for one trip?
Does LRS apply to NRIs?
How we checked this page
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Written and fact-checked by the Elitech Travels editorial desk in New Delhi, drawing on our consultants' day-to-day booking work and the official sources below. Rules, fares and fees change — always confirm anything critical with the issuing authority before you travel. Our editorial policy.
