Consequently, any sum of money gifted to nephew shall not be chargeable to tax in the hands of the nephew. However, reverse shall be taxable since nephew is not a relative of his uncle in terms of the definition contained in Section 56 of the Act.
Hi Balasubramanian,
Non-Resident Indians (NRIs) can repatriate a maximum of $1 million without paying any tax on money transfers from India to the USA. The reason is, as per Section 206C(1G) of the Income Tax Act, there is no applicable TCS when NRIs transfer money from their NRO to their NRE account.
US citizens have a tax-exempt allowance on gifts to people overseas, and in 2023, this stands at $17,000 ($34,000 for married couples). If the transferred sum exceeds the threshold, then the tax is applied to the whole sum, not just the amount exceeding the limit.

In most cases, the money can be picked up within minutes of sending, but this will depend on the method chosen when sending the cash. It will remain in the system for 45 days, but according to our research, it will be sent back to the sender if not redeemed after nine months.

Of course! Banks are usually not the best way to make international money transfers. The fees can be quite low (and sometimes even zero), but beware of the poor exchange rates which banks often apply. We list as many banks as possible in our results, so do compare to find out if you'd be better off switching to another bank or a specialized money transfer company.

Remember that some providers will have maximum transfer amounts as well, either as a result of American tax policies or because their service is more limited. If you need to send a large transfer, look for a provider that has higher or no sending limits to India.
Liberalised Remittance Scheme (LRS) was brought into effect by the Reserve Bank of India in 2004. According to it, residents of India can remit a maximum of $250,000 within a given financial year to individuals living overseas. This includes both capital and current account transactions.

2. can i send rs. 1.5 lacs pm from my monthly savings as i still work?

Hawala, also known as Hundi, is an informal alternative to remittance and money transfers still popular in south Asian and Islamic communities, as it doesn't require a formal banking setup. However this does have some security risks as it is a system that has been used to facilitate organised crime.
Between 2004 and 2010, Western Union was accused of allowing fraudulent transactions and received more than 550,000 complaints about fraud. Since then, it has paid over $586 million in fines to settle this issue. Being extra cautious by only sending or receiving money from people you know is a necessary extra step for your safety.
The company employs Financial Action Task Force standards to guide its operations whether or not the host country has adopted them. This is in addition to an AML (Anti-Money Laundering) Compliance program and a robust Internal Audit Committee whose operations are in compliance with the Bank Secrecy Act.
I am a person of Indian origin living in Sweden For the last 43 years. I have an inhertied property in India which i want to transfer or sell to my brother in blood relation. There are two way of doing it. One i just give him a gift and cost of transer deed will be around 1200 Rs but then i can not mention the amount we have decided the other i sell it at collecter rate and pay long term capital whatever it will be. property is registered on my name since 2000.In blood relation, my brother can gift me up to 250000 dollars /year without any permission from RBI So we both can give gifts to each other according to law. could there be any problem with income tax

Exchange Rate: A margin is added to the exchange rate when you convert your US dollars (USD) into Indian rupee (INR).
Hi Jag,
Me and my elder brother have inherited an immovable property in the form of Residential House equally. My brother wants to gift his half share in the property to me as he has become an NRI with permanent sttlement in Australia . His name and passport has also been changed now . He is unable to come to india for this purpose because of health reasons . How I can get the Gift deed executed in Australia and submit in India for the purposes of registration ?
Say if money transferred as "maintenance" is used in some investment, like buying a house or investing in stocks or bonds abroad, is there any rule against it? It is to be noted here that once the money is transferred to NRI account abroad, there is no control of resident Indian father, wheather under the option of "maintenance" or under the option of "gift" and therefore, common sense says, that issue is irrelevant from taxation point of view for any party. Please clarify.