Chartered Accountants in India, working with clients across the UK

Liberalised Remittance Scheme
FEMA & RBI · LRS

Liberalised Remittance Scheme:sending money to the UK.

Parents in India paying university fees in London, helping children buy a home in Manchester or simply sending a gift: all of this goes through the Liberalised Remittance Scheme. Each resident can send up to USD 250,000 a year, but banks collect TCS on larger amounts. We plan the remittances and the paperwork.

Limits and TCS plannedFees agreed in writingBank paperwork handled
LimitUSD 250,000 per person a year
PurposesEducation, gifts, investment and more
TCS2% or 20% above ₹10 lakh
TCS backClaimed in the tax return

How the LRS works.

Under the LRS, every resident individual, including minors through their guardians, can send up to USD 250,000 each financial year abroad for permitted current and capital account purposes, through an authorised dealer bank, with their PAN.

  • EducationUniversity fees and living costs abroad.
  • Medical treatmentTreatment and related travel abroad.
  • Gifts and maintenanceTo relatives living abroad, such as children in the UK.
  • TravelPrivate and business travel.
  • InvestmentShares, funds and property abroad, within the rules.
  • Not allowedMargin trading, lotteries and some other purposes.

Tax collected at source from April 2026.

PurposeTCS
Education funded by a qualifying education loanNil
Education or medical treatment, self-funded2% above ₹10 lakh a year
Overseas tour packages2% from the first rupee
Gifts, investment and other purposes20% above ₹10 lakh a year

TCS is not an extra tax. It is credited to the sender's PAN and set off or refunded in their Indian return. The TCS certificate is now Form 133.

Common uses for UK families.

University fees

Parents paying UK fees and living costs, often with 2% TCS above ₹10 lakh, or nil with an education loan.

Help with a home

Gifts towards a UK deposit; each parent has their own USD 250,000 limit.

Gifts

Gifts to relatives abroad are allowed; tax rules are on our Gifts page.

How we help.

01
Plan

Purpose and amount

Which purpose, which family member, and when.

02
TCS

Reduce the cash cost

Timing and purpose that keep TCS lower, where allowed.

03
Paperwork

Bank forms

Form A2, declarations and supporting documents.

04
Claim

TCS credit

Set off or refunded in the sender's Indian return.

Why NRIs in the UK choose us for India tax.

Both sides of the border

We work with the India side of your tax while keeping your UK Self Assessment and treaty position in view.

Reviewed before filing

Every computation is checked by a second Chartered Accountant before anything is filed.

Fees agreed in writing

A written scope and fee before work starts, with no surprise charges later.

Secure and fully online

Encrypted document sharing and e-verification, so nothing needs a trip to India.

One team all year

Returns, TDS refunds, FEMA questions and property sales handled by the same team.

Plain-English answers

Clear explanations of what you owe, why, and what to keep for next year.

LRS planning for families with children in the UK.

We help families in India send money to children and relatives across the UK, from university towns to London, within the LRS rules.

London

City of LondonCanary WharfHarrowWembleySouthallHounslowIlfordEast HamCroydonEdgware

South East

ReadingSloughMilton KeynesOxfordWatfordLutonCrawleyGuildford

Midlands

BirminghamLeicesterCoventryNottinghamWolverhamptonDerbyNorthampton

North of England

ManchesterLeedsBradfordSheffieldLiverpoolNewcastlePreston

East and South West

CambridgePeterboroughBristolSwindonSouthamptonBath

Scotland, Wales, NI

EdinburghGlasgowAberdeenDundeeCardiffSwanseaBelfast

Liberalised Remittance Scheme FAQs.

Up to USD 250,000 per resident individual each financial year.
Above ₹10 lakh a year, usually 20% for gifts and investment, and 2% for self-funded education or medical costs.
No. It is credited to the sender and set off against their tax or refunded through their return.
Yes. Each resident individual has their own USD 250,000 limit.
No. The LRS is for residents of India. NRIs move money under the repatriation rules.

Sending money to family in the UK?

Tell us the purpose and amount. We will plan the limits, TCS and paperwork.

This page is general guidance based on FEMA, RBI directions and Indian tax law as they stand. It is not legal or financial advice for your situation. Limits and rates can change, so please speak to us before acting on it.