Can I use LRS to remit money outside India for F&O trading?2 min read 14 Sep 2023, 10:34 PM IST
Remittances under LRS are allowed only in respect of permissible capital or current account transactions or a combination of both.
As per the Liberalized Remittance Scheme (LRS), an Indian citizen can send $250,000 per year. Can this amount be used for investments in futures & options (F&O) trading on international listed derivatives. For example, can a trading account be opened with an international broker in foreign geography to trade exchange products such as S&P 500 futures, crude oil options, gold, Comex (F&O market for commodities), etc. What is the taxation if the account is opened in Dubai, UAE or Singapore; jurisdictions which have double taxation avoidance agreement (DTAA) with India?