How Much Money can you Transfer Online to NRI Account?
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.
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 circumstances.