Lesson 37 of 53 · Investing abroad · 4 min read · Reviewed 29 Oct 2026
Up to US$2,50,000 a financial year under RBI’s Liberalised Remittance Scheme. The first ₹10 lakh of remittances in a year carries no TCS; above that, 20% is collected for investment, which you can claim back against your tax. Indian funds that invest abroad avoid TCS but work within industry-wide overseas limits.
Resident individuals, including minors, can send up to US$2,50,000 a year abroad. HUFs, firms and trusts can’t use the scheme.
Remittances above ₹10 lakh a year carry 20% TCS for investment. It is credited against your tax, not a final cost.
Indian mutual funds can invest abroad up to US$7 billion across the industry, US$1 billion per fund house.
Key idea: A fund of funds investing abroad is long-term after 24 months, with gains taxed at 12.5%. Listed ETFs turn long-term after 12 months.
Try the short quiz on this page to check what stuck.
When the fund house or industry reaches its overseas limit.
Yes. From 1 Apr 2026 it is 2% above ₹10 lakh.
Section 394 of the Income-tax Act 2025 (206C(1G) of the 1961 Act).
For learning only, not investment advice. Built in India by a team that tracks its own money on Reva.