Rebate on LRS fee extended up to May 31
The Telangana government has issued orders yet again extending the deadline for payment of fee with 25% rebate for the Layout Regularisation Scheme to May 31.
The government had already extended it twice, first to April 30, and then to May 4. The initial deadline ended on March 31 for the rebate scheme which was launched on February 20 this year.
As per the initial announcement, a 25% rebate was announced on the regularisation fee and open space charges if paid before the deadline, for the LRS announced in 2020. Applicants were given the option of paying pro-rata open space charges at the time of obtaining building permissions too, but they will have to be paid in full, without 25% rebate.
A total 25.67 lakh applications were received from across the State in response for LRS, when it was first notified in 2020. However, the applications were not actively processed, nor proceedings were issued, shelving the whole scheme for years.
The response for the rebate offer is not very enthusiastic. Only 5.19 lakh applicants availed the rebate up to April 30 deadline, which is a little over 20% of the total applications. The LRS proceedings were issued with respect to 40% of the applications for which fee payment was made.
Though the government hoped to collect ₹20,000 crore by way of the LRS fee payment, it could earn only ₹1,863 crore, achieving less than 10% of the targeted revenue.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
01-06-2025
- Mint
GIFT Nifty sets all-time high monthly turnover of $102.35 billion in May 2025
GIFT Nifty, the leading derivative contract on the NSE International Exchange (NSE IX) at GIFT City, reached a record monthly turnover of $102.35 billion ( ₹ 8.75 lakh crore) in May 2025, setting a new benchmark for the platform. This figure exceeded the prior monthly peak of $100.93 billion achieved in April 2025. This exceeds its earlier peak of $100.93 billion, which was recorded in April 2025. Since beginning full-scale operations on July 3, 2023, GIFT Nifty has achieved a total turnover of $1.93 trillion, covering over 43.28 million contracts as of May 2025. 'We are glad to witness the success of GIFT Nifty and express our sincere gratitude to all the participants for their overwhelming support and making GIFT Nifty a successful contract,' NSE IX said in a statement. Indian retail investors are still unable to access GIFT Nifty through the Liberalised Remittance Scheme (LRS). Under this scheme, the Reserve Bank of India (RBI) prohibits using the annual $250,000 limit for leveraged trading, such as futures and options. However, Indian brokerages and their subsidiaries are allowed to onboard non-resident clients and wealthy Indian family offices. In addition to trading on their own behalf, they are permitted to execute trades for these clients. Established on June 5, 2017, NSE IX is a multi-asset international exchange located in GIFT City, functioning under the oversight of the International Financial Services Centres Authority (IFSCA). It dominates the market within GIFT IFSC with a market share exceeding 99%, offering a wide variety of instruments such as Indian single stock and index derivatives, currency derivatives, depository receipts, and global equities. The platform also supports the listing of various financial instruments, including equity shares, SPACs, REITs, InvITs, and ESG-linked debt instruments, all in accordance with IFSCA regulations. Both NSE IX and GIFT Nifty have received major regulatory approvals, including a Part 30 exemption from the CFTC and Class Relief from the SEC, enabling U.S.-based investors to trade derivative products on the platform. Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
&w=3840&q=100)
Business Standard
30-05-2025
- Business Standard
RBI's LRS review to align with wider economic, geopolitical conditions
The Reserve Bank of India's (RBI's) initiative to review the Liberalised Remittance Scheme (LRS) framework is part of a routine exercise to align it with wider economic and geopolitical conditions, experts said. In its annual report released on Thursday, the RBI said it has initiated a comprehensive framework review and is examining various aspects, including the annual remittance limit, permissible purposes, transaction modes, and currency options. The LRS scheme was introduced in 2004, allowing all resident individuals to remit up to $25,000 per financial year for any permissible current or capital account transaction, or a combination of both, free of charge. This limit was gradually revised to $250,000 on 26 May 2015. 'Given the current dynamic economic environment, evolving capital flows, and the emergence of new-age transactions — such as investments in digital assets and international platforms — there is a clear need to relook at the LRS framework. Additionally, with remittances now linked to PAN, there may be a broader policy push to align LRS usage with income-tax compliance, ensuring that outward remittances reflect an individual's financial profile and tax status. A review can also help address concerns around sensitive sectors and potential misuse,' said Moin Ladha, Partner at Khaitan & Co. According to recent data, India's outward remittances under the Liberalised Remittance Scheme moderated by 6.85 per cent year-on-year (YoY) to $29.56 billion in FY25, after rising to an all-time high of $31.73 billion in FY24. In its annual report, the RBI said it has eased procedures and expanded the scope of the LRS in FY25, with the aim of improving convenience and accessibility for resident individuals. From 3 July 2024, authorised dealers (ADs) were allowed to facilitate remittances based on online or physical submission of Form A2, subject to Section 10(5) of FEMA 1999, irrespective of transaction value. Additionally, resident individuals were permitted to send funds under LRS to International Financial Services Centres (IFSCs) for any permissible current or capital account transaction, effective from 10 July 2024, the RBI said. Individuals were also allowed to use funds held in their IFSC-based foreign currency accounts to make transactions in other foreign jurisdictions. Previously, LRS remittances to IFSCs were allowed only for investment in securities. This was expanded on 22 June 2023 to include payments of education fees to foreign universities operating in IFSCs. 'Amid the growing educational inflation abroad and broader inflation, there is a need to relook at the LRS limits. The review is part of periodic assessment and the RBI keeping in sync with the changing realities,' another expert said.
Economic Times
26-05-2025
- Economic Times
Looking to take your investments international? Why Gift city should be your chosen gateway
Tired of too many ads? Remove Ads Outbound investments Tired of too many ads? Remove Ads Popular in Wealth 1. FD rate up to 9.1% for senior citizens investing for 5 years; Know the list of banks Inbound investments End note (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of .) The International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT) is treated as an international jurisdiction, even though its central business district is located within India's an example, Indian banks that have branches at GIFT report the deposits there as global (non-domestic) deposits. This is a gateway for investments to and from abroad, which can be used as per one's requirements. While international investments can also be accessed outside of GIFT—through avenues like the $2,50,000 annual Liberalised Remittance Scheme (LRS) or mutual funds—it's useful to be aware of all available options to make informed stocks are listed on the NSE IFSC at GIFT City, though currently this is limited to select US stocks. Indian exchanges like NSE and BSE operate at GIFT City, offering a curated list of leading global stocks. Due to currency conversion, stock prices in INR tend to be on the higher side. Investors cannot purchase these stocks directly; instead, they must invest through an IFSC receipt—an unsponsored depository receipt (UDR), which is a negotiable financial instrument. The UDR represents fractional ownership of the underlying US us consider an example. Say you have a positive view on the Apple stock and want to take exposure. We'll assume the stock costs $199, the unit being US dollar (USD). At a conversion rate of about Rs.84.5 to a USD, the price per share of Apple would be approximately Rs.16,800. Let's say the price of one UDR, with Apple as the underlying asset, at NSE IFSC is $7.95. Using the same conversion, it is approximately Rs.672. Hence, you are buying nearly 4% of one stock of Apple, with commensurate benefits in price appreciation and dividends. This is known as fractional ownership—without owning one full stock, you hold a fraction of it, with proportionate investments through GIFT City are part of the LRS, which has a ceiling of $2,50,000 per financial year. You go to your bank, get your money converted from INR to USD, and remit USD to your broker. There are currently seven brokers, all Indian entities, set up at GIFT City for this purpose and their names are listed on the NSE IX website. There is no compulsion for investments abroad through GIFT City, but the finance hub enables you and guides you for the time, the volume of overseas investments has been steadily rising. According to the RBI, the top categories for remittances are travel, education, maintenance of relatives, and gifts—followed by investments. From a $0.75 billion investment in equity/debt via LRS in 2021-22, the number steadily rose to $1.25 billion in 2022-23, and $1.5 billion in 2023-24. If an Indian investor already has funds abroad and that is routed through GIFT City, it is not counted as part of the LRS limit. In simple words, your LRS limits get freed up every year; hence, your past LRS investments fall within the LRS limit of that year. Every year you start on a fresh plate; a limit of $2,50, investments carry the additional benefit of INR depreciation over the investment horizon. For example, you invest in stocks/bonds/mutual funds abroad when the USD-INR exchange rate was 83. After a few years, at the time of withdrawal, it reaches 86. As you are converting from USD to INR at 86, this depreciation adds to the returns you earned from your investments flowing into India through GIFT City initially come in foreign currency, as the central business district is a foreign jurisdiction. For overseas investors, it is expected to be in USD (or other foreign currency), but it should be the same for Indian/NRI investors as well. Investments of funds into India is according to the financial product mandate as delineated by the product manufacturer. It could be investments into Indian equity or bonds or any asset class, as per the product specifications. The money is converted to INR and enters Indian jurisdiction. As long as funds remain invested in a bank at GIFT City in foreign currency, it is not a remittance to India, for that limited investments in India, there is the risk of currency depreciation over the investment horizon. As stated in the earlier example, if a foreign or NRI investor put in money when the exchange rate was 83, they got commensurate INR for investments. On redemption, at conversion rate of 86, they would get relatively lower quantum of USD.A point to be noted is that India-focused investment avenues cannot be availed by resident Indian investors, since investments into the country from an offshore jurisdiction by resident Indians will tantamount to roundtripping, which is not permitted by the investments abroad, if you have an appropriate wealth manager/investment adviser, you can take guidance on investment opportunities abroad. If your aim is to send money abroad for a goal that is a few years away, such as your child's education, the INR depreciation is an issue. You may send money earlier, in phases, to avoid the depreciation issue, to suitable investment products Author IS A CORPORATE TRAINER AND AUTHOR.
