Bob, a Director at Skynex Ltd., along with his wife, major son and father, purchased a property in Mexico, holding equal shares in the property.…

(ii) Under the Liberalised Remittance Scheme (LRS), all resident individuals, including minors, are allowed to freely remit up to USD 250,000 per financial year (April-March) for any permissible current or capital account transaction or a combination of both. Clubbing is not permitted by other family members for capital account transactions such as opening a bank account/investment/ purchase of property, if they are not the co-owners/co-partners of the overseas bank account/investment/property. In the given question, since, Mr. Bob, his wife, major son and his father are holding equal shares in the property, clubbing is permitted and thus, the family members can remit USD 1,000,000 (implies USD 250,000 per member) to Mexico in a single financial year without requiring any approval.