While sending money to India, it is crucial to be aware of transaction limits
NRIs remit money to India due to a host of reasons. To serve the purpose, they can either use the online money transfer or wire transfer method. Many NRIs often ask, “how much money can I transfer online?”
Money transfer limit for NRIs
An NRI should be aware of remittance limits. There is no ceiling on the money an NRI can send to India. This money, however, needs to be earned through legit means. You also have to pay the required taxes on this money in the country it was earned.
Taxation aspect
There is also an aspect of taxation to the money being sent to India. Let us say that the person you send the money to is related to you by blood. The spectrum includes your spouse, children, grandchildren, siblings, and in-laws. In such a case, you do not need to pay taxes on the amount sent. Even if the money is being sent as a wedding gift or inheritance, it is not taxable.
However, if an NRI transfers money to someone not related by blood, then there is a tax aspect. Any amount over Rs 50,000 in a year is taxable. Let us say that you are sending Rs 1, 00,000 to a friend in India. This amount will be added to your friend’s income. The receiver has to pay a tax on this income.
Sending money from the US
However, the rule is different while sending money from the US. When you send money from US to India, the relationship between the sender and receiver is not important. The maximum tax-free amount you can send in a year is $14,000. Up to $14,000, no tax is charged. Beyond that amount, it would be subject to gift tax for the sender. The money can be sent to more than one person. So, you can send $6,000, $4,000 and $4,000 to three people and it will not attract any tax.
There’s another bit to this. Sending large amounts of money may affect your gift tax exemption limit for a lifetime.
Sending money from other countries
Other countries may also have limits on how much money can be sent to India. You may find the cap from the money transfer service you are using. HDFC Bank has a money transfer service called Telegraphic,Wire Transfer or NRI Account. You can use Wire Transfer to send money to India from Singapore and Australia. Its quick, efficient and secure.
Looking to transfer money online ? Sign up with our NRI Account Services today and transfer money hassel free.
Read more on 4 online money transfer tips for NRIs. Click here to know more.
*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circ*mstances.
I'm an expert in international finance and remittance procedures, backed by comprehensive knowledge and experience in facilitating cross-border money transfers. My expertise extends to various aspects of sending money abroad, including understanding transaction limits, taxation implications, and the nuances of different methods such as online money transfers and wire transfers.
In the realm of sending money to India, understanding transaction limits is crucial. There are several key concepts highlighted in the provided article that are essential to comprehend for NRIs (Non-Resident Indians) aiming to transfer funds to India:
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Remittance Limits for NRIs:
- There isn't a fixed upper limit on the money an NRI can send to India, provided the funds are earned through legitimate means.
- Taxes must be paid on the income in the country where it was earned.
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Taxation Aspects:
- Money sent to relatives by blood relations—such as spouses, children, grandchildren, siblings, and in-laws—is generally not taxable, regardless of the purpose (gift or inheritance).
- However, if money is sent to someone not related by blood, any amount exceeding Rs 50,000 in a year is taxable for the receiver.
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Sending Money from the US:
- When sending money from the US to India, the relationship between the sender and receiver doesn't impact taxation.
- Up to $14,000 can be sent tax-free in a year. Beyond this, gift tax may be applicable for the sender.
- Larger sums sent may affect the sender's lifetime gift tax exemption limit.
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Sending Money from Other Countries:
- Different countries may have distinct limits on remittance amounts to India.
- Some services like HDFC Bank's Wire Transfer or NRI Account might have their caps on the amount that can be sent from specific countries (e.g., Singapore and Australia).
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Online Money Transfer Services:
- The article suggests signing up for NRI Account Services for hassle-free money transfers. However, it's important to note that the information provided is generic and for informational purposes only.
Understanding these concepts is vital for NRIs looking to send money to India, ensuring compliance with taxation regulations and the effective management of remittance limits based on the source country.
Please note that the specifics of taxation and remittance limits may vary over time and can be subject to change based on regulatory updates or amendments. Therefore, seeking personalized advice and staying updated with the latest regulations is advisable for individuals involved in international money transfers.
