Remittances — Amendments

Amendment	Year	Description	Impact
FEMA Amendment 2015	2015	Significant liberalization of the Liberalized Remittance Scheme, increasing the annual limit from $125,000 to $250,000 per individual. This amendment also simplified procedures for various categories of remittances and reduced compliance burden on banks and customers.	Enhanced India's integration with global financial markets, facilitated overseas education and investment by Indians, and demonstrated confidence in external sector stability while maintaining regulatory oversight.
FEMA Amendment 2020	2020	Introduction of Tax Collected at Source (TCS) provisions for foreign remittances under the Liberalized Remittance Scheme, requiring banks to collect tax at specified rates for different categories of remittances exceeding certain thresholds.	Improved tax compliance and revenue collection while maintaining the liberal remittance regime, balancing the need for foreign exchange liberalization with domestic tax policy objectives.

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