How to send money to India as a gift
When you send money to India to your family, it can be a major source of income for your family. It will especially be useful for your parents as they grow old. If you make a wire transfer to India, there could be tax savings or implications that you need to be aware of. In this article, we will take a look at how you can send money to India as a gift.
Does transfer of money to parents fall under tax category?
The short answer is no. The money will remain non-taxable as long as you send it to your parents or relatives. Gifts from NRIs to relatives in India do not fall under the category of taxes, according to the income tax rules in India.
Who are the qualifying relatives for tax exemption?
Here are various relatives to whom you can transfer money without paying any taxes.
- Spouse
- Brothers or sisters
- Brothers or sisters of spouse
- Brothers or sisters of your mother or father
- Your lineal ascendant or descendant
- Lineal ascendant or descendant of your spouse
- The spouses of your lineal ascendant or descendant, or lineal ascendant or descendant of your spouse
Uncles and aunts who have blood relation or defined by marriage are also eligible for tax exemption.
How much money can I send as a gift to parents?
There is no upper limit on the amount you can send from abroad to your parents in India. However, the limit will depend on the country you reside in. You can check with the money transfer agencies or banks in your country to check how much you can transfer.
Important things to keep in mind when sending money as a gift in India
Besides sending money to parents or relatives in India, there are several other categories that qualify for gift money. These will remain exempted from any tax. Here is a list of purposes for which you can send money tax-free.
- Marriages
- Deaths
- Inheritances
- From recognized institutions or trusts
- University, educational institution, medical institution, hospital, fund.
Send money to India hassle-free with Lotus Remit
A recognized and established money transfer agency like Lotus Remit can help you send money abroad as a gift seamlessly. We have been in this business for years, and our customers trust us for the best exchange rate for MYR to INR. You can expect to receive the best Malaysian Ringgit to Indian Rupee exchange rates and minimal service charges, which will be worth every rupee you are transferring. You can use money converter to understand the exact amount you want to send. Contact us today to know more about our services and the exchange rates we offer.
