LRS
The Reserve Bank of India scheme that lets a resident individual send up to USD 250,000 abroad each financial year, including to buy property overseas.
What LRS means for a buyer
The Liberalised Remittance Scheme (LRS) is how a resident Indian sends money abroad. Under the Reserve Bank of India's Master Direction on the scheme (updated 6 September 2024), each resident individual can remit up to USD 250,000 per financial year (April to March) across all purposes together, and acquiring immovable property abroad is a permitted capital account transaction, subject to the Overseas Investment Rules, Regulations and Directions of 2022.
For a Dubai purchase the practical points are: the limit is per person, so co-owners each have their own; family members can consolidate remittances for a property only if they are co-owners; you must give your PAN and complete Form A2 through one designated bank branch; and Indian banks may not lend to fund capital account remittances under the scheme. At the dirham's peg, USD 250,000 is AED 918,125.
Remittances above ₹10 lakh a year also attract TCS. The full rules and a payment schedule planned around the limit are in buying Dubai property from India and the India buyer guide.
Related terms
Guides that use this term
Where LRS comes up in practice, with the costs, rules and steps around it.
Questions about the buying process?
An adviser can explain how this applies to the property you're considering.
- Current price list and availability, direct from the developer
- No fee to you on off-plan purchases: the developer pays us
- One salaried adviser, not on commission, from first call to handover
