Outward Remittances

In this session, Richa Sawhney, Partner – Tax, Grant Thornton Bharat talks about the new tax rules, business implications and gives tips to students aspiring to be in tax advisory roles

Investments in foreign equity/debt only major category with gains

Outward remittances under RBI's LRS fell to the lowest level of FY26 in November, as overseas travel and education spending by Indians moderated

Outward remittances under RBI's LRS slipped to $2.36 billion in October 2025 as overseas travel and education outflows fell, while remittances for equity and debt investments rose sharply

Outbound remittances rose slightly to $2.78 bn, even as H1 outflows stayed lower due to weaker education and family transfers

India's outward remittances fell 17.7% YoY to $2.6 bn in August 2025, led by lower travel and overseas education spending amid tightening US visa norms

According to the latest RBI data, the amount remitted under LRS was down from $2.75 billion recorded in July 2024

RBI data shows decline in remittances for travel and education abroad while property and equity investments rise under Liberalised Remittance Scheme in May 2025

April 2025 outward remittances under the RBI's LRS rose 8.6 per cent YoY to $2.5 billion, but full-year outflows fell by 6.85 per cent amid global uncertainty and high base

RBI data shows LRS outflows dropped to $29.56 billion in FY25 due to weak income growth, rupee depreciation, and lower transfers for education and close relatives

Overseas remittances for the purchase of immovable property rose by 28.32 per cent Y-o-Y to $277.7 million

In the April-January period of FY25, the largest segment - international travel segment slipped marginally to $14.75 billion, from $14.95 billion in the year-ago period

Outflows under the scheme were impacted by deposits, maintenance of close relatives, and the international travel segment, among others

In the August-October quarter of financial year 2024, Indians remitted $8.37 billion overseas, compared to $9.05 billion during the same period last year

The remittances for maintenance of close relatives fell by 37.17 per cent Year-on-Year (YoY) to $1.92 billion as compared to $3.05 billion

Investments in equity and debt schemes surged by 108 per cent to $120.86 million from $58.06 million

Maintain detailed records of foreign remittances, including purpose, amount, and beneficiary details

In June 2024, overall remittances fell around 44 per cent Y-o-Y to $2.18 billion amid a decline in remittances across categories

Major lenders like ICICI Bank Ltd. and State Bank of India have dominated the outbound remittance market in India

Remittances under the scheme stood at $2.42 billion in May 2024