As per the RBI website, with the Liberalised Remittance Scheme (LRS), all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both.
Further, resident individuals can avail of foreign exchange facility for the purposes mentioned in Para 1 of Schedule III of FEM (CAT) Amendment Rules 2015, dated May 26, 2015, within the limit of USD 2,50,000 only.
The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and microeconomic conditions.
In the case of the remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian. The Scheme is not available to corporates, partnership firms, HUF, Trusts etc.
What declarations are required to be made to the Bank/RBI for investments through the LRS route?
All banks authorised to remit funds as instructed by clients, have their own forms and declarations. Typically, Clients have to declare the purpose of the remittance and the sum of past remittances in the prevailing FY.
Any declaration to be done while filing Tax returns?
All residents of India have to declare holdings of overseas assets (if any) as part of their annual tax filing. The format is prescribed in the relevant sections of the IT Act. Kristal provides the relevant information to Clients for their filing. Kristal can refer Clients to a CA should they need any advice or services in this regard. The Clients can evaluate the services and commercials independently.
What is the process for declaration credits received on redemption? Redemptions are retained in the Clients investment account with Kristal and are part of the tax reports provided by Kristal. In case of withdrawal where the Client is bringing the LRS funds back into India, the receiving banks will likely seek details from the Client to ascertain the arrangement under which the Client is bringing the funds back into the country.
The Onboarding is completed with Kristal within the next 24-48 hours of Business working days. It is the simple process where the client's KYC needs to be verified and the Investment account to be opened.
We are licensed in Singapore, Hong Kong and India. Kristal Advisors (SG) Pte. Ltd. presently operates under the CMS license by the Monetary Authority of Singapore (MAS). Kristal Advisors (HK) Ltd is licensed and regulated by the Securities and Futures Commission (SFC) to carry out Type 4 and Type 9 regulated activities and is not involved in the discretionary management of any collective investment scheme. Kristal Advisors Private Ltd. presently operates as a Registered Investment Advisor under the jurisdiction of the Securities and Exchange Board of India (SEBI).
This is offered only to Accredited and Institutional Investors as defined under the Securities and Futures Act, Chapter 289 of Singapore (“Act”), which broadly comprises of regulated financial Institutions, large corporates, high net worth individuals and sophisticated investors.
An Accredited Investor is an individual
Whose net personal assets exceed in value SGD 2 million (or it’s equivalent in a foreign currency) with value of his/her primary residence capped at SGD 1 million, or
Whose financial assets (net of any related liabilities) exceed in value SGD 1 million (or it’s equivalent in a foreign currency), or
Whose income in the preceding 12 months is not less than SGD 300,000 (or it’s equivalent in a foreign currency)
I agree to opt-in as Accredited Investor and will submit required documentation to confirm the same.