Tag Archives: Liberalised Remittance Scheme

Breaking Boundaries, Indian travellers have reached a new peak in overseas spending. According to data from India’s central bank, Indians spent $31.7 billion overseas under the Liberalised Remittance Scheme, in fiscal 2024. More than half of that- 54% was on international travel $17 billion, a 25% increase from the previous year.

The Lok Sabha passed additional amendments to Finance Bill, which mentions that any payment made with a credit card to foreign vendors (such as for hotel and airline bookings, gaming, subscriptions to software/magazines/memberships, etc.), will be subjected to TCS at 20% irrespective of the amount paid. Credit card payments for foreign travel can be now brought under RBI’s Liberalised Remittance Scheme, announced Nirmala Sitharaman in the Lok Sabha.  

According Reserve Bank of India data, the money sent abroad by Indians for travel grew threefold from $316.81 million in February 2021 to close to $1 billion ($980.45 million) in February 2022. This is under the Liberalised Remittance Scheme (LRS) for resident individuals. It crossed the pre-pandemic level of $539.74 million in February 2020. Indians spent about $3.23 billion for travel, sharply down from $6.95 billion in FY20.