You can send the money, however, the tax indications/legality depends upon your relation and amount.
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?
You can send the money, however, the tax indications/legality depends upon your relation and amount.
It is for my sister, the amount is 20 lakhs. Is this legal and what is the tax implication?
Resident Indians can send up to $250,000 per year to their relatives abroad for certain expenses, including select investments.
You can send/gift up to USD 2,50,000 per Financial Year (FY) for maintenance of close relatives abroad.
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.
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
An amount of $250,000 per year can be sent to relatives abroad , there wont be any tax liability on you.
You can send said sum of money to your sister in order to support her maintenance. No tax implication.
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
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
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 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.