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LRS stands for Liberalized Remittance Scheme, a framework set by the Reserve Bank of India allowing resident individuals to remit a certain amount of money for various purposes including education, travel, and investments abroad.
Any resident individual in India who wishes to remit funds outside the country for purposes like education, travel, or investments under the limits set by the Reserve Bank of India is required to file for LRS.
To fill out the LRS, individuals must complete a declaration form provided by the bank or authorized dealer, stating the purpose of remittance, the amount involved, and other required details like their PAN (Permanent Account Number) and the source of funds.
The purpose of LRS is to facilitate individuals in transferring funds abroad for permitted activities like education, medical treatment, travel, and investments while ensuring compliance with foreign exchange regulations.
The information that must be reported on LRS includes the amount of remittance, the purpose of the remittance, the recipient's details, the source of the funds, and the individual's PAN.
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