Rupee-Dollar Value: 5 things to know before investing or sending money abroad

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The RBI’s Liberalized Remittance Scheme (LRS) will be your one-stop shop for all your foreign exchange concerns,

1. Buying dollars in India

To invest or spend abroad, one must first convert Indian rupees into US dollars for any international transaction.

Such transactions are subject to the Liberalized Remittance Scheme’s regulations (LRS).

2. Maximum dollars that you can remit abroad

Any resident person, even a juvenile (countersigned by a guardian), is currently permitted to remit up to 2.5 lakh US dollars

in any financial year under the LRS guidelines.

3. Dollars allowed to carry abroad

If you are going on an international trip with the family, the ‘foreign exchange facility’ will determine

whether you will be allowed to carry dollars. The person is required to keep their currency usage to a maximum of USD 2,50,000.

4. Buying US stocks, opening a foreign bank account

The LRS regulations will classify any investments you make in stocks, real estate,

or other assets abroad as capital account transactions. According to LRS regulations, only specific capital account transactions are permitted.

5. Income, dividends earned abroad

The LRS laws permit an investor to keep and reinvest income received in the foreign country

if they have made investments in shares and mutual fund schemes

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