• Outward remittance by Indian citizen to UK

I have a relative abroad who needs money. I need to sell some of my mutual funds to send the money abroad. Is this legal and what are the tax implications?
Asked 6 years ago in Taxation

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16 Answers

You can send the money, however, the tax indications/legality depends upon your relation and amount.

Suneel Moudgil
Advocate, Panipat
2386 Answers
6 Consultations

Resident Indians can send up to $250,000 per year to their relatives abroad for certain expenses, including select investments.

you can send money abroad for maintenance of your relative 

Ajay Sethi
Advocate, Mumbai
99776 Answers
8145 Consultations

Transfer the funds via NRI account 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

You can send/gift up to USD 2,50,000 per Financial Year (FY) for maintenance of close relatives abroad.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

No tax implications.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

There is no legal bar to send money abroad as long as you keep official record of the lawful source of money.

If the money is sent from abroad then there is restriction on certain conditions.

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

If that amount is taxable in your return then you don't have to pay any tax but you need to pay remittance for sending it

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Yes you can send money and give it as a gift for saving tax.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Give it as a gift to your sister.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

An amount of  $250,000 per year can be sent to relatives abroad , there wont be any tax liability on you.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Yes it is legal.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

You can send said sum of money to your sister in order to support her maintenance.  No tax implication.

 

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

There are no restrictions on the frequency of remittances under LRS. However, the total amount of foreign exchange purchased from or remitted through, all sources in India during a financial year should be within the cumulative limit of USD 2,50,000

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

A resident Indian can send money to the UK for the maintenance expense of their close relatives up to up-to USD 2,50,000 per Financial Year (April - March) ['relative' as defined in Section 2(77) of the Companies Act, 2013] abroad.

FEMA covers all forms of foreign exchange transactions and remittance payments. That means that there are guidelines and rules which apply if you’re an individual wanting to move money in or out of India.

The part of FEMA which covers outward remittances for Indian citizens is called the Liberalised Remittance Scheme, usually shortened to LRS.

Under the LRS, Indian citizens can transfer money to bank accounts abroad without needing to get special permission. However, money can only be intended for a set number of purposes, and remittances are allowed only up to a maximum annual limit which is currently set at USD 250,000

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Under the LRS, Indian citizens can transfer money to bank accounts abroad without needing to get special permission. However, money can only be intended for a set number of purposes, and remittances are allowed only up to a maximum annual limit which is currently set at USD 250,000.

In broad terms, the LRS allows Indian citizens to transfer money abroad for the following purposes:2

  • To cover the costs of overseas education and living expenses for students living abroad
  • Travel and tourism costs, as well as business travel expenses
  • Medical treatment abroad
  • Purchase of shares or property overseas
  • Supporting family members living abroad
  • Gifts and donations - it’s worth noting that some organisations don’t qualify under LRS rules

To remit over USD 250,000 in one year you’ll need special permission from the RBI, and you can’t remit money which originates from certain sources including.

 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

1. Yes it is legal to send money to your sister through remittance.

2. There will be no tax implication for your sister as she is your blood relative and you have paid taxes on income in India.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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