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EB5 Status

LRS

Also known as: Liberalised Remittance Scheme (India)

Policy · EB-5 Glossary

Definition

India's Reserve Bank of India (RBI) program that permits Indian residents to remit up to $250,000 per person per financial year (April 1 through March 31) for permitted capital account transactions, including overseas investments. LRS remittances exceeding ₹7 lakh (approximately $8,400) per financial year are subject to Tax Collected at Source (TCS) at 20%.

Context

LRS is the primary regulatory framework for Indian EB-5 investors transferring funds to the United States. Family pooling (multiple family members using their individual LRS quotas) is the most common approach to funding the full $800,000 investment.

Official Data|RBI Master Direction on LRS (FED Master Direction No. 07/2022-23); Finance Act 2023 § 206C(1G)

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