As per the Union Budget 2025-26, the remittance threshold under the Liberalized Remittance Scheme (LRS) was raised from ₹7 lakh to .​

Correct option is B

The correct answer is: (B) ₹10 lakh

Explanation:

• In the Union Budget 2025–26, the threshold under the Liberalized Remittance Scheme (LRS) for exemption from Tax Collected at Source (TCS) was raised from ₹7 lakh to ₹10 lakh per financial year.

• This move was intended to ease compliance and reduce tax burden on small remitters, especially those sending money abroad for education, medical treatment, or travel.

Information Booster:

• LRS allows Indian residents to remit up to USD 250,000 abroad annually.

• TCS is not applicable on foreign remittances up to ₹10 lakh after the 2025 update.

• For remittances above ₹10 lakh: 5% TCS applies on education/medical (if not via loan), 0.5% if via loan, and 20% for other purposes.

• The raised threshold aligns with the aim to support middle-class families sending students abroad.

• The change came into effect from April 1, 2025.