Mandatory to quote PAN even below $ 25000 transactions under LRS

New Delhi, June 20 (KNN) Now under the Liberalised Remittance Scheme (LRS) quoting of permanent account number (PAN) is mandatory even for transactions below USD 25,000 after the Reserve Bank of India (RBI) tightened norms.

Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year for any permissible current or capital account transaction or a combination of both.

Individuals can avail of foreign exchange facility for the purposes within the limit of USD 2,50,000 only.

“It has been decided that furnishing of PAN, which hitherto was not to be insisted upon while putting through permissible current account transactions of up to $25,000, shall now be mandatory for making all remittances under LRS,” the Reserve Bank of India (RBI) said in a notification on harmonisation of data and definitions.

For remittances allowed under LRS for maintenance of close relatives, it has been decided, in consultation with government, to align the definition of ‘relative’ with the definition given in Companies Act, 2013 instead of Companies Act, 1956, it added.