How to Send Money to India as Gift

After working abroad for sometime a NRI will want to transfer money to their friends or family in India. It could be for a friend’s wedding, to support a family member, investment or just as a gift to a loved one. The money transfer could be frequent or occasional depending on the need of the individual.

When you have family or friends who cherish receiving presents, sending money as gift would be the best idea.

Why Sending Money as Gift is a Good Option

The income of NRIs is not taxable in India. Thus sending money to India is a very good way to save. Sending gifts to India is also not taxable. So incase the NRI has to repay a loan to a person in India he can send it as gift. The money will not be taxed and his loan will also be cleared. There is also the provision for administration co-operations between revenue officers in the two countries for double tax agreements. This is for a check on the NRI’s tax records. But as theses services are rarely used, they remain only on papers.

Ways of Sending Money as Gift

SendWise

Sendwise.com offers the facility of sending money to India through gift cheques. Canara Bank issues the gift cheques. The recipient receives the same in about 4 working days. The payment for the cheque can be done through your credit card. Credit card transaction fees and services charges apply. The site can also be used to send other gifts to people in India.

Remit2India

For sending money through Remit2India, the customer has to state the purpose of sending money every time. Money sent through this cannot be towards the purpose of External Commercial Borrowings (ECB), Advanced Remittance for professional services not rendered and/or capital infusion as defined by the Reserve Bank of India.

The customer can send money as gift for special occasions like a marriage. If he sends money regularly to a person, it will not be considered as gift.

Paypal

Using PayPal Send Money is an easy and fast way to send money as gift. There is absolutely no limit on the gifts sent by NRIs to resident Indians in terms of foreign exchange or Indian rupees or in the form of assets. Any gifts received by relatives are not taxable also.

For sending a gift the only requirement is an offer by the donor and its acceptance by the recipient in black and white. To avoid any problems, the recipient should request the donor for a gift. After this the donor should remit the amount to the recipient. An alternate way would be where the donor makes the offer. In both the cases it is compulsory that the recipient accepts the gift in writing.

Keeping your need in mind, you can choose any of the above mentioned options. Make a loved one happy by sending him a gift!