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LRS is the Liberalised Remittance Scheme — the RBI rules for an individual in India sending money abroad for a personal purpose, like education fees or travel.The test is what the money is for, not who is paying. An individual buying goods or services from a foreign seller is making a purchase, not a remittance: it does not draw against their LRS limit, and no TCS applies. Only the purposes on this page do. If you are unsure which you have, the purpose code decides it — and so does the event you receive: an LRS payment gets LRS_VERIFICATION_NEEDED, everything else gets VERIFICATION_NEEDED.
When an individual in India sends money abroad, LRS decides whether they are allowed to, how much, what tax applies, and what paperwork is needed. EximPe is licensed by the RBI as a Payment Aggregator – Cross Border, and a partner bank makes the actual transfer. You give us the buyer, the amount, and the documents. We enforce the rest.
FEMA, TCS, PAN, ₹10,00,000 — if any of the terms on this page are unfamiliar, the Glossary has them all.

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Who does what

Onboard each institution you collect for as its own sub-merchant, with its own settlement details. Collections are tracked per sub-merchant. You can onboard one or many.

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The rules in four lines

  • Who can pay — resident individuals only, including minors through a guardian. Not companies, partnerships, HUFs, trusts, or non-residents.
  • How much — USD 250,000 per person per financial year, 1 April to 31 March. That ceiling covers everything they send through every bank, not just through us.
  • Whose money — it must come from the buyer’s own account. LRS is reported against the PAN of the account that was debited.
  • What for — every payment carries a FEMA purpose code, and the code decides the documents and the tax.

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What we check

1

They are a resident individual

Verifying the PAN rejects company, HUF, and firm PANs automatically. Residency cannot be proved by PAN alone — non-residents hold individual PANs too — so the buyer also affirms it in the declaration.
2

The money came from their own account

LRS runs on the PAN of the debited account, so the sender must match the buyer you named. A payment always settles against whoever actually paid; it can never be booked to a different person’s PAN.Where a parent or sponsor pays for a student, the parent is the buyer — their PAN, their account — and the relationship to the student is declared.If the money arrives from an account that does not match, the payment is held. You then either refund it, or send us the PAN of whoever actually paid so it settles against them and their limit.
3

They affirmed the declaration

The buyer affirms it; you pass the result to us.

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The declaration

Three requirements — resident status, the LRS limit, and source of funds — are put to the buyer as one declaration. They must affirm it for the payment to proceed.
“I am a resident individual under FEMA, and this remittance is under the Liberalised Remittance Scheme. My total LRS this financial year, including this remittance, is within the permitted limit of USD 250,000, and it is for a permitted purpose (not one prohibited under FEMA/RBI). The funds are from my own legitimate sources and comply with FEMA, RBI, AML and income-tax laws. The information in this declaration is true and complete and I accept sole responsibility for its accuracy.”
It maps onto a single field, buyer_declaration, on Submit Verification Details. Send true once the buyer has affirmed it.
Read the exact wording to show the buyer from the requirement set — Get Verification Requirements returns it as the label on buyer_declaration. Use that rather than copying the text above, so your screen stays right when the wording is revised.

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Tax at source (TCS)

How it works, whatever the payment is for. TCS is charged on a threshold basis: below the threshold nothing is taxed, and on the payment that crosses it only the slice above is taxed. Once the buyer’s counter is past the threshold, the whole of each later payment is taxed. EximPe works the figure out. There is nothing for you or the buyer to declare — we compute it against our record of what that PAN has sent through us this financial year. Quote LRS Amount returns the exact amount as tcs_inr, the rate applied as tcs_rate, and why it came out that way as tcs_reason. Read the rate from the response rather than assuming it. Collect it on top of the amount to be settled. The bank pays it to the government against the buyer’s PAN, and the buyer claims it back as a tax credit — it shows up in their Form 26AS. For education, the rate is 2% and the threshold is ₹10,00,000 of the buyer’s cumulative LRS in a financial year. The first ₹10 lakh each year is tax-free.
We track LRS usage and refuse anything that would breach the USD 250,000 annual cap, on the data we can see. The bank is the wider backstop at settlement.

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What a payment needs, by purpose code

Everything else on this page — who may pay, the limit, the declaration, the tax — is the same for every LRS payment. This is the only part that varies, and it varies by purpose code. Common to every LRS payment. The buyer’s name, address and contact; the invoice number and date; the remitter’s name, PAN, date of birth and relation; buyer_declaration; and the two amounts — principal, what is to be settled, and collected_tcs, what you took from the payer as TCS ("0.00" if none). Every LRS purpose code asks for these. Get Verification Requirements is the authoritative list for any given payment. What follows is what each code adds on top — first what its group shares, then anything specific to the code itself.
Both are for education paid from the buyer’s own funds.Shared by both. The student’s name and date of birth. The letter of admission, and a relationship declaration where the buyer is not the student. An invoice may be asked for.S0305 only. The student’s passport number, their passport, and either their student visa or their university ID card.S1107 only. The university ID card. There is no travel leg, so no student visa exists.
No scanned PAN card. PAN is a field, validated electronically.

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What partners get wrong

  • The money comes from someone else’s account. Enforce own-account payment in your UX. Where a parent pays, onboard the parent as the buyer.
  • Treating the student as the buyer. Capture the student separately, and set relation to SELF only when they really are the same person.
  • Quoting before verifying the PAN. An inactive, non-individual, or name-mismatched PAN is a guaranteed rejection later. Catch it first.
  • Showing the buyer a price without the tax. They underpay, and you handle a shortfall.
  • Poor document scans. Legible, in date, right type. The offer letter is the one that matters most.
This is a product and compliance overview, not legal or tax advice. Ready to build? See LRS Verification.