How a lot cash can dad and mom ship to their youngsters overseas?
If your youngsters finding out or working overseas want cash, how a lot are you able to switch them at one go?
Under the Foreign Exchange Management Act (FEMA) provisions, an Indian citizen can remit as much as $250,000 (round ₹1.86 crore at current) in a monetary yr for specified transactions.
Permissible transactions embody the opening of a overseas foreign money account overseas with a financial institution. You may also use the restrict for the acquisition of property overseas.
Investors can use it for buying shares, mutual funds, debt devices, or investing in personal equities, and so forth. An particular person can use this restrict for private or enterprise visits or when emigrating to a different nation. It’s additionally relevant for presents and donations.
Within the required restrict, Indian residents may also ship cash to take care of shut relations, medical remedy, and training.
Therefore, you possibly can ship as much as $250,000 to your kids overseas freely beneath the Liberalised Remittance Scheme of the Reserve Bank of India.
However, you would face some restrictions on the quantity you need to switch relying on the mode of remittance. For instance, in case you are doing a web-based switch – through web banking or on-line providers – many banks and brokers have a cap of $25,000 for every transaction.
Some banks might even have restrictions on the every day switch quantity that their clients can do on-line.
If you need to switch over $25,000 to your shut relations overseas, you will want to go to a financial institution’s department. It would require you to finish some paperwork, together with filling up the outward remittance type and attaching supporting paperwork.
Therefore, earlier than choosing outward remittance, be sure you know the transaction limits your financial institution or agent has on outward remittances.
(Do you’ve gotten private finance queries? Send them to [email protected] and get them answered by business consultants)
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