Economics · Economy
Which of the following statements is correct regarding the Liberalized Remittance Scheme (LRS) and Tax Collected at Source (TCS) rules in India?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The LRS limit stands at 250,000 US Dollars per financial year, and all medical remittances are taxed at a flat TCS rate of 20 percent without any threshold.
- 2The LRS limit has been reduced to 150,000 US Dollars per financial year, and no TCS is applicable on overseas tour packages.
- 3The LRS limit remains at 250,000 US Dollars per financial year, and remittances for overseas portfolio investments (excluding education and medical) attract a TCS of 20 percent if the amount exceeds 7 lakh rupees.✓
- 4The LRS limit has been increased to 500,000 US Dollars per financial year, and all remittances attract a uniform TCS of 5 percent.
Correct answer
The LRS limit remains at 250,000 US Dollars per financial year, and remittances for overseas portfolio investments (excluding education and medical) attract a TCS of 20 percent if the amount exceeds 7 lakh rupees.
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