Celebrations across the globe have taken a new turn due to the coronavirus and, attendance for most events is also now digital due to border constraints and quarantine rules. Gifting has gone the digital route too, with a series of digital payment solutions that took front stage in the last year. Sending money abroad to your loved ones as a gift is now a few clicks away. Read more about the various kinds of outward remittance transfers an individual can send across the globe to family and friends who are living abroad.
While the term remittance is broadly understood by many as the transfer of money abroad online from an account in India to account overseas for various purposes such as – gifting, maintenance of family abroad, repatriation, investments in equity, immigration and so on. We’re delving a little deeper for you to understand better.
- Remittance for Maintenance of Family Abroad:
- Remittance for maintenance of family abroad refers to the transfer of money from an Indian account to the account of a close relation abroad to help them sustain themselves.
- All resident Indians are eligible for this remittance and a maximum of USD 250,000 can be remitted under the liberalised remittance scheme. (LRS)
- Who are considered as Family Relations:
- Members of an Hindu Undivided family
- Husband and wife
- Following relationships:
- Father(including step-father)
- Mother(including step-mother)
- Son(including step-son)
- Son’s wife
- Daughter’s husband
- Brother(including step-brother)
- Sister(including step-sister)
- Remittance for Repatriation:
- Repatriation refers to the ability of funds to be transferred freely across countries by converting them to foreign currency. In other words, the transfer of funds/income by NRI (Non-Resident Indian) or PIO (Person of Indian Origin) from the balances held in their Non-Resident (Ordinary) Rupee Account (NRO a/c) to his/her Non-Resident External account (NRE a/c) or overseas bank account is termed as Repatriation.
- Factors to consider before remitting for repatriation:
- Once you become an NRI you will need to open an NRO, NRE or FCNR-B account in India.
- While NRO accounts are meant for funds earned in India, NRE accounts hold your foreign income.
- What can be remitted and how much?
- Current Income: Salary, pension, dividend, interest, rent, distribution from any type of deposits, investment, or properties including profits from proprietorship or partnership business can be remitted without a limit.
- Sales proceeds of assets: Balance held in the Indian account and the sales proceeds of assets in India acquired by way of inheritance/legacy or under deed settlement with parents. This can be remitted at a limit of USD 1 million/year.
- Gift Remittance:
- Gift remittance refers to the transfer of money abroad online for gifting purposes. All resident Indians are eligible to send gift remittance abroad within the overall limit of USD 250,000 per financial year.
- Given the personal nature of gifts, one cannot deem an organisation or themselves as the beneficiary.
Wall Street Forex is in partnership with leading banks and has a strong network to facilitate your remittances for various purposes across the globe with ease. Talk to us today or simply download the WSFx Smart Fx App and send money abroad, buy forex online, buy forex cards on the go and manage it and thereby, simply empower yourself with handling forex requirements at your fingertips.