Gift By Resident individual to NRI specified relative.

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies how resident individuals can send money to NRI specified relatives. Two primary methods are discussed: direct bank transfers under LRS or gifting via cheque/net banking to the NRI's NRO account in India. Both methods are considered correct, with no specific limit dictating the choice between them. Furthermore, there's no distinction in treatment whether the funds are sent as a 'maintenance' payment or a 'gift'.

rmalhotra

rmalhotra (Querist)
Follow

12 January 2024 Sir,
There is lot of opinions that how a resident individual can send money abroad to his " Specified Relative '.

A ) It could be a direct transfer thru bank to bank a/c abroad of a NRI Specified Relative under LRS
OR
B) Resident individual can also gift money to a close relative NRI vide a cheque or net banking to his NRO account in India, subject to overall limit of USD 250,000 in a financial year. The NRI can take out the money already lying in his NRO account subject to a limitation of USD 1 million per financial year.

Hence following queries:-
1 Which of the above alternates is correct.
2. Is there any prescribed limit beyond which alternate ' B ' is required to be adopted
3 Is there any difference if amount is transferred as ' Maintenance ' or ' Gift '.

Pls guide.