Form A2 and the operational flow

4 min · For educational purposes only

Every LRS remittance requires a Form A2. Understanding what your bank actually asks for makes the operational side painless.

The Form A2 essentials

Form A2 is the declaration you sign for every outbound remittance under FEMA. It records the purpose code, beneficiary details, and an undertaking that you have not breached the LRS cap. Most banks now offer a digital A2 flow.

For GIFT City product subscriptions, the beneficiary is typically the trustee or fund administrator's collection account inside the IFSC. The purpose code is usually S0001 (capital account — investment in equity) or S0003 (investment in debt).

Common operational mistakes

Wrong purpose code — leads to FEMA reporting mismatch and downstream tax queries
Aggregation across spouses without separate A2s — each individual files their own
Repatriation of overseas gains without re-routing through the original remitter's account
Forgetting to update KYC at the offshore broker after PAN/address changes

Key takeaways

Form A2 = the declaration; submit one per remittance.
Purpose codes matter — they shape downstream tax reporting.
Operational hygiene now prevents auditor and tax queries later.